I just sold my second Sept Dow (10433)

[Ironlock]

Sell it fellas.

I'm already short one at 10680, the low for he day is 10367 and we've rallied about 80 points.

 

[Hitman26]

Sold short? What did you sell exactly? Are you betting on it to go down?

 

[Jimmy Hoffa]

Shares of Home Depot and Lowe's to really jump on all the reconstruction from the hurricane.

 

[Ironlock]

Sold short? What did you sell exactly? Are you betting on it to go down?

Yes, short. Betting to go down. Or even as some people say, buying it to go down...lol

It's a futures contract traded in NY, an index. I sold the Sept futures contract.

 

[Hitman26]

So you sold September calls? Did you sell them naked or did you use a spread?

 

[Ironlock]

No hitman, I did not sell options, I sold the underlying contract that the options are based on, the futures contract.

It is traded just like cattle, beans, corn, gold, silver, etc...are traded, on the futures market.

1 contract is worth $10 X Dow =$104,330

The margin requirement, through my firm is around $5000 per contract, so basically, you are getting 21 to 1 leverage....a 100 point drop in the dow, would be a $1000 profit, and a 20% return on your "investment" (if that's what you want to call it).

On the downside, if the dow went up to 10933, I would lose my entire $5000..(margin) on the trade, for a 100% loss.

I am well on ahead, on the short @10680, and made a decision then, that I would sell it all the way down. I have stops, (get out of the market) at 11001.

Iron.

 

[Ironlock]

Yesterday was a joke, and anothe case that proves just how arrogant and ignorant of risk investors have become.....

When this tree gets shook....alot of these guys will end up in the brush pile. Panick selling...coming soon, in my opinion.

 

[SSI]

i trade the emini sp...

good luck on your short...

 

[Pancho Sanza]

As if the day to day stress of gambling isn't enough, can't imagine doing that and shorting index futures as well.:smoke

Talk about an adrenaline junkie.

 

[SSI]

$50pt on the emini, as opposed to $250 per pt for the big sp contract... talk about adreneline......

 

[Ironlock]

As if the day to day stress of gambling isn't enough, can't imagine doing that and shorting index futures as well.:smoke

Talk about an adrenaline junkie.

You got it! Action junkie! Better than a just plain, junkie!

:+eyes-13+ :+eyes-13+ :+eyes-13+ :+eyes-13+

 

[heart222]

If you noticd today again the first minutes was one end of the daily range. happens 1-3 a week sets up good trades. by the way last hour of the last day of the month tends to go down. why/ becausethe big funds dont buy they dont want a problem with the sec regarding painting the tape. its a high proability trade worth watching. good luck

 

[heart222]

my last hr play was a loer today. -20 points $100.00 market just roared into the close. will see next month

 

[Ironlock]

This market is confusing me, and whenever I feel that way, its usually best to bail...I'm gonna see it through at least til friday close....Good luck in your trades!

 

[GreenDoberman]

The market does not mimic the present, it forecasts the future.

 

[Ironlock]

Agreed, but in my opinion, the future does NOT look bright. I may be wrong.

 

[Hitman26]

Agreed, but in my opinion, the future does NOT look bright. I may be wrong.

Ditto. All of these high gas prices are gonna hurt the economy in the "future". Dober is right though, the market is supposed to measure about 6-9 months into the future not now. I still think we have an ass buster day or week coming. A minimum of a 200 point drop in the Dow is my prediction by next Friday (in one day). This disaster is gonna have a trickle down effect. God forbid if the Feds keep raising interest rates what that is gonna do to the economy.



Time will tell