Wednesday, August 27, 2014

Markets Climbing A Wall of Worry

Decided to talk with Tom and Tony again on TastyTrade.  I have been mostly out of the market since May 2014, as the markets slowly ground higher during the Summer months.  We had a 4% dip in the beginning of August and I decided to buy the dip after falling 3%.  I was a couple days early shorting volatility, but when the bombs starting falling on Iraq on August 7th, it was the bottom and my account started heading back up to its all time highs!  There is a saying that I will never forget.  "You want to sell on war rumors and buy when the bomb start falling!"

Talkin the Markets with Tom and Tony - Aug. 27th 2014:  Tom and Tony have been basically short for the last 3 years.  They keep fighting the market, by shorting futures contacts as we climb higher and higher, even though all 'technicals' show that we are in a bull market.  They are classic Contrainian and never capitulate.  Eventually, they will be right, but for now they are only right for a few days to a week before we grind higher again.  I called them out on there bearish stance.  I tend to not be so dogmatic and believe that the trend is your friend.  Right now the trend is up and best to go with that until it changes.


 I also made a call to Liz & Jenny about rolling my covered call on Aug 21st.


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