Sorry I have not posted in the past two days. I had a busy schedule which included a day at Mommy & Me class where we held a round table discussion about the theory of relatively and its impact on global warming in the Ozarks. It was very boring and I could not wait to get out of the place.
I would like to thank everyone for helping Ryan Thomas Baby Trader break the 10,000 hit barrier today in exactly 30 days. At least something is going up these days. It seem like just yesterday when Lehman folded and my parents thought it would be cute to manipulate me into an alphabet block shuffling icon on Blogger. I have been extremely accurate on the entire market direction over the past few weeks which are documented throughout my blog. I would like to thank www.investingdad.com for doing a video commentary about this website. He took the time to do a conversion of how I would have done with the exact same trade but in options. Please check it out his site.
So I am sitting in cash right now waiting for the market to come back and test the lows from last week which is 7800. I actually believe 8000 was the original level that I was targeting, however due to the sudden rise in the VIX (69.5) and the incredible rally (+938) and sell off (-733) in two trading days, we will continue to sit on the sidelines and wait for our entry point. I am very bearish right here and have no reason to doubt this call.
Do not ever put all your money into calling a bottom on the market. It would be like buying insurance on the Titanic from someone on the Titanic. It will never work. I introduce to you the concept of baby steps. Buy 1/4 of your positions if the INDU hits 8000. Then buy another 1/4 position if the INDU drops to 7500 and if we drop to 7000 you buy another 1/4 position and you are done. Keep 1/4 available for unforeseen issues.
Here is the link to the video if the above link is not working
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