Monday, November 26, 2007

Dow slips another 237 points

The DOW closed today at 12743.44. Since April 4, 2008, it has only dipped this low on one day in August, the 16th to be exact.

While I am not one to panic, holding firm in the face of adversity sure isn't working for me. I have a fist full of calls that I purchased in November, that are losing time value as we speak as I keep waiting for the graceful out that never comes. As my portfolio diminishes in size, I have to seriously consider taking some losses, and not having any regrets when the market bounces back. I've limited my day trading to one trade a day, and have found myself on the wrong side of every trade I have made since last Wednesday. I have several stocks that I watch, I try to determine which direction they are moving, and jump on and off before they reverse. Unfortunately I have picked the wrong stock each day to trade, which is only exacerbating the losses that I am feeling from the calls I am holding, and adding to my feelings of frustration.

Today was RIMM calls. I had a several opportunities to get out with a small gain or loss, before the end of day plummet. Despite my original plan to sell at whatever I could get at the end of the day, I have seen the market rebound from these big losses each of the past three Tuesdays, so I am holding this one overnight, and going to look for a reasonable out before the 10:30 dip.

Wish me luck my friends, I'm going to need a fistful of it if I am going to survive the December option month. The bear is coming at me, whether I want to believe it or not.

Note: Learned today from Navelliers blog that Mutual Fund tax year ends on October 31, so fund managers have already done their year end tax sales. This is a perfect time for them to be scooping up the blue chip bargains.

Always perform your own due diligence before making any investment.


Anonymous said...

Hey caprincess, I enjoy reading your blog as I am going through the same kinda trials and tribulations trying to learn how to trade options. I have been watching PCU since before the last split. It went from round 50 to 135 or so and then started tanking. I'm trying now to predict the bottom and finally bought some Mar 08 calls yesterday. What with a looming recession/depression, do you think it's bottomed? Thanks

CaPrincess said...

Hi Anonymous,

I'm glad you are enjoying my blog.

I have watched PCU bounce off that 98 to 102 area a few times during this recent turbulance. Personally, I think anything under 105 is a great deal.

Thanks for the comment, and if I don't hear from you again, have a wonderful Christmas, and may at least 70% of your option trades be green. *smile*

Anonymous said...

No updates for a while. I hope everything is OK.