Humility was delivered to my workspace this morning, too. With the bullish GDP reading, my last-minute (literally) investment in AA puts during yesterday's market was proven to be a mistake. Yet, I can fall-back on buttressed logic in that decision, at least. What's worse, I still have the puts now. That's right; I did not sell. And I don't have a good reason -- besides, of course, for that common psychological impairment inherent to all humanity: reluctance to book a loss. Hope does indeed spring eternal.
Tomorrow I will surely examine my continuation of this long-short strategy; as a reminder, I continue to hold QQQQ calls alongside those AA puts. I see today's decisive rally continuing through tomorrow's open, but then it risks fading absent further stimulus. We may yet see a re-test early next week of Wednesday's lows. Thus, I may execute a strategy of selling the QQQQ calls if a short-term top appears to form and then hope for price deterioration to advantage my holding of puts.
Finally, here's a 10-day of QQQQ, which approximates for an overall market snapshot, too:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx9ZU27wOFaMWTF4KhbUIRhug5KLYFgqm2Fip7R6jjiiKaTdaFaTjTdfAtDcuFCWYGA1x9aMxGsKlBHmbvHsWbw6ZBcVEZuF3I6zXvS0DNLRZ5ye3R-uY7YOsJ0kPD8-PIY5S0eXM-yTQ/s400/qqqq.gif)
No comments:
Post a Comment