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.

Thursday, February 5, 2009

Long Now/ FAS, FAZ

Tomorrow's Plan

1. Sell AZO 130s on any Dips.

2. Buy back 1 more AZO 120 on high.

3. Leave 1-1 Put spread in place for now.

4. Buy SPX March Calls on any Dips.

5. Sell SPX Feb Calls on any HIGHS.

6. Look at ERX and XLE.

DID OPPOSITE OF LAST THREE ABOVE.  FOUGHT MARKET.  LOST MONEY.

Ways to Play FAS, FAZ.

You could play these exclusively.

1. Find direction using XLF chart. Wait until you are sure.

2. Enter one position. In order to exit, use other one. In order to double down, short other...

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