Fear And Greed – Its Called A Market

I look back on last night’s post and frankly……bust a gut. A touch “brash” fair enough – but……when there’s nothing else to say….well – there’s nothing else to say. Obviously the foresight gained through study of  currency markets ( opening Sunday afternoon) held true, and I live to blog another day “sans” consumption of crow. A massive upturn across markets, as Uncle Ben’s QE money finds its mark. How’d I know? – Common –  I told you a couple of days ago!

Regardless…some interesting observations here “blog wise” – as traffic literally falls off the map, with huge gains abound, green candles everywhere, happy smiley investors, and  tranquil “bliss” scattered ‘cross the net like tortilla’s in a hurricane. Apparently…..Kong no longer needed.

Tranquillo amigos. I booked my profits today at the NYSE close.

We go higher from here sure ….but “I” go higher with 4% more gas in the tank than this morning so……take it for what it’s worth…most guys are lucky to bank that….yearly.

Don’t be an ass if you see profits in this environment – take em. We’ve seen some fear here in recent days – with everyone scrambling for info…..scrambling for some ” sense of it all” – and now with one  big “up day” you think you’ve got this thing solved?

Please……..is that greed talking?

18 Responses

  1. Ronnie Byrd November 19, 2012 / 4:44 pm

    KONG, Good job bro’, I love to hear you had a good day and the GOOD sense to fill your wallet.I have come to the conclusion in this market that one is crazy to pass up a profit.Man I know you are busy but I need some advise on a vertical call I took,I admit I should of probably practiced this but I just learn better playing for real,anyway I can’t find material on exiting properly so if you have time or not I appreciate your post anyway.

    • Pot Stock Watch November 19, 2012 / 7:58 pm

      Hi Ronnie….sorry for the late response but….for whatever reason I only saw / viewed your commment now.

      If you want to outline the details of your trade – I will most certainly have a look… and offer whatever insight I can.

      • Ronnie Byrd November 19, 2012 / 8:44 pm

        KONG, I bought 65 QQQ calls and sold Equal amount 71 calls,I have not closed out one of these.My question is can I sell the 65 calls before expiration at a profit sub 71,and if I do how do I get free of the 71?I understand holding the 65 to expiration regardless of where the 71 calls end and just execute and take profit,is nthere a better way to play this? thanks for your time Kong, Ronnie

        • Pot Stock Watch November 19, 2012 / 9:07 pm

          Ronnie…..

          More importantly – what month / how much time do you have?

          Off the top of my head – a “bull call spread” is not a novice strategy – and as I’ve recommended here previously – when dealing with options, best to keep things simple – very simple!

          Luckily in this case….it looks like your timing is such that – you should do ok….but I assume (on your trading platform) that a sale of the 65’s will result in termination / of the entire position?

          Best advice I could give you Ronnie – would be to exit the entire position as soon as you are even close to “in the green” and just get back to basics. The premiums you (in theory) will have saved in off setting the near term buy with the longer term sell – isnt really worth it in my view.

          If you think the price is goin up – then get yourself some longer dated calls and call it a day no?

  2. schmederling November 19, 2012 / 4:55 pm

    Hey-Kong…. did our hear that CAD & AUS are being looked at by the IMF as a reserve currency…. great for Canada!!

    Yeah I am Canadian….

  3. schmederling November 19, 2012 / 5:03 pm

    20 pip jump in the dxy index…. let the games begin…

    • Pot Stock Watch November 19, 2012 / 6:20 pm

      All the reason why I often take profits after NY session – I will take the 20 or 30…or 50 for that matter and just look to reload.

  4. schmederling November 19, 2012 / 6:19 pm

    Hey Kong – I am holding SLV shares and Dec/Jan SLV Calls…. basically looking on the side here and just waiting. I will take some currency positions here and there taking 2% to keep the mojo going. I’ll drop the Dec calls sometime in early-mid Dec unless I am sparked to change direction. The SLV shares looking to book profits sometime in the next 45 days. All green across the board except for my NUGT Dec calls – this one got smacked really hard – I am ok with that… should be ok to take some green away by December.
    Your perspective above is based off a short-term day trade correct?
    All my SLV positions moved up above 6k. today.. not a bad day at all….

    • Pot Stock Watch November 19, 2012 / 6:27 pm

      Its like this….once I’ve entered (and have more or less “proven” Im on the right side of the trade) I will often book profits and then drop down a time frame or two ( or three) – and re enter in the original direction – at levels of support / resistance.

      Its not for everyone – as it does require a bit more “technical trading” but……in theory if you’ve already got the “macro trend” right – any small mistake on re entry is quickly corrected as the trend keeps on rolling – all be it with 2 things achieved – more cash in my account, and keeping things nimble.

      • schmederling November 19, 2012 / 6:53 pm

        Got it thanks – I’ll just stick with my squeexe play for now with currency… it’s been working very well… until I gain more experience in this sector I am not going to mess around…
        Just took EUR/JPY… I know you don’t like this with risk on but this is just a quick scalp…

        I want to share it with you but you never connected via email…. let me know… cheers schmed

        • Pot Stock Watch November 19, 2012 / 6:59 pm

          I love long EUR/JPY and am also planning to trade the hell out of it.

          I suggested dumping long EUR/AUD – as AUD will be bought more aggressivley than EUR in times of “risk on”.

          JPY will be sold like mad – u see? JPY is a safe haven – and AUD is a ” risk related” currency – they behave polar opposite vs EUR.

          Ive deleted emails etc – as there are many – can we try again?…of course I want to see/ understand your entry etc…

  5. schmederling November 19, 2012 / 6:22 pm

    I know we have the Fed bizz tomorrow…. we know that an addtional 85bill per month will be spent on bonds. Looks like to market has already priced this in….. Why then do I feel like this is a bounce ” dead cat bounce” collecting the last few just to dump again….

  6. schmederling November 19, 2012 / 6:27 pm

    Long CAD/JPY thats it for now

  7. Ronnie Byrd November 19, 2012 / 9:17 pm

    Kong, yes I was exploring a bit recklessly.They are jan.13 exp.and I feel good on the long leg in that time frame,I just was not sure on closing the short leg.So what you are saying is when I sell the 65 hopefully at profit it will end the 71 leg? It is hard to ask this kind if ? on SMT w/o the wolves chewing on a leg,I really appreciate your time and admire your use of currencies and knowledge of/Wow what a great advantage and feeling it must give you!!!

    • Pot Stock Watch November 19, 2012 / 9:44 pm

      There you go – you can’t be “reckless” with options…they will bite you in the ass before you’ve even blinked.

      This is a tough one…I don’t really want to give you the wrong advce but….I’d ditch the long call sells” immediately (even if small loss) and hang on to the near term calls as I expect further upside here in coming days. Maybe you make a buck…maybe you break even but….lesson learned.

      Thoughts?

  8. Ronnie Byrd November 19, 2012 / 9:52 pm

    Kong, Yes I agree with that strategy and many thanks for your time plus I appreciate your way of not telling me “Don’t do That”. Message received my friend.

    • Pot Stock Watch November 19, 2012 / 10:05 pm

      Good luck man.

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