Lessons

1. If VIX is under 26, buy the dip. If VIX is over 26, sell the rip.

2. Always trade in the direction of the larger trend. Find the strongest trend in your time period.

3. Nothing as bearish as a failed breakout. Nothing as bullish as a failed break down.

4. Don't worry about the last dollar. Take your money and go to the beach!

5. No more than four positions at a time. Preferably 2-4. Scope out others. Pick the strongest.

6. Buy the strongest; sell (short) the weakest.

7. Nothing is guaranteed. Nothing.

Friday, November 16, 2007

Overall View - Important

Just a quick note to remember that I will be shorting the rally I expect next week, both by buying inverse shares and December Puts, which I expect to get cheaper.

Again, I'm expecting a climb up to 13,500- 800 by November 25-30, then a fall to 13,000 or so by December 10 or so, followed by a Tech related rise.

I plan to:
1. Buy DIA December puts next week.

2. Sell a Google December call around November 25-December 4. (Sometime around then Google will announce its bid for bandwidth, which may be a ST Top.

3. Buy back the Google December call around December 10.

4. Buy RIMM December calls on dips in November and December.

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