Wang’s Happy Trading

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Heating up!

Markets took it on the chin today as we get started with earnings season, which promises to be one of the worst in the history of mankind.  Breadth was bad for the third time in four days, but turnover was subdued.  Sectors were hit hard today, including commodities, oil, coal and tech…oh, and don’t forget financials.  This bear market continues though, taking swipes at every corner.  There is not escaping it.  Sure there may be an Obama rally…but a test of the lows (or even lower) is not out of the question.

We picked off a nice winner today, booking a HUGE gainer in SRS calls….we added some new put plays, too that are working nicely.  We’re starting to ‘heat’ up…look for some more ideas out later this week.

Over the weekend…Happy had some great viewpoints:

The market is now again at support.  Breaking blow the daily MAs could easily push the market lower, and perhaps to test the Nov 2007 bottom.  VIX has risen back above 40 and could test the resistance at 44-45 again…

And this sage advice:

Since the market has been trading in a tight range, waiting for the right opportunities to present themselves has been working quite well.  Not trading everyday and keeping lots of cash have also helped to calm the nerves so that I can see things more clearly.  I will continue to modify trading strategies to fit the market’s moods.  The goal is to profit from the market’s weakness.  After all, we are still in a bear market and most people are expecting the bottom to be tested.

For those of you following our fearless leader, you will likely be ahead at the end of the day!  Happy has been on FIRE lately, and he’s just getting started!  He booked a couple of nice wins today on both sides of the market, the sign of a wise trader.  We’re all focused on making winning trades…and this is the market to get it DONE!

Have a great night, hit ‘em straight!

Bagger