Thursday, January 19, 2012

Elusive top

The market is long overdue for a correction (small/big) but it keeps chugging along smoothly with pinpoint moves everyday in the northern direction. I posted an update last week here . I expect SPX to top in the next few days. Below is the current SPX daily chart:

When the market is moving less than 1% intraday and VIX at ~ 20, it is not good to trade quickly like when VIX was at ~ 30. You will end up paying your brokerage a lot in fees than what you make out of your trades. You need to shift gears when needed.

As for me, I haven't made a trade in the last few days after I sold MON short. I made a pairtrade with AAPL calls at that time. Though I was able to close the AAPL calls for a good profit, MON is continuing the upward move like the general market itself.

There are always trades to be made in any market but I was busy in the last 2 days. Something that I didn't expect to happen ever has happened in my life on Tuesday. No public disclosures but such things are worth more than a million $. There are some things in life that are worth more than money. I will take such things anytime over any trade. :)

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