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Fall from Grace, All Within 3 Months - Learn to Trade Options | #1 Options Trading Education

Fall from Grace, All Within 3 Months

Published on February 7, 2008

Fall from Grace, All Within 3 Months

February 7, 2008

Currently we are in the periods that was supposed to be bullish. We are in the year that is supposed to be bullish. We just had a year that was supposed to be bearish but turned out Bullish. S&P just finished The worst period in its history since inception nearly 3 quarters of a century ago (9% down YTD in a comparable year). Welcome to the contrarian (I prefer “uncertain” to “contrarian”) times. Money is made via surprises. If everything is known, money has already been minted.

I have been saying over and over again that bear market rallies are brutal. Also advised that don’t consider this bullish unless Dow crosses the 12745 zone. I think patience and perseverance won over the greed, at least for short term.

fall-from-grace.gif Here are six charts I am attaching for your consideration that explains that gravity assists fall, not the rise. Rise always needs external fuel. All 5 tickers were part of OPN watchlist that I had shared earlier. Notice how quickly these stocks have fallen. Hardly anyone, including me, could have foreseen these darlings falling so rapidly. “Fear” is a much stronger emotion than “Greed” and that’s why I personally like bear days than bull days.

We just opened our first mini-portfolio for OPNewsletter and we are positive in spite of market fall. We’ll open few more, as appropriate. If you would like to benefit from OPN latest portfolios, this is a good time to sign-up. Sign-up is via invitation that is based on waitlist. Currently I am traveling and therefore not sharing speculative trades as those requires quick actions.

Waiting for Thursday, Profitable trading, OP

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