Tuesday, February 2, 2010

Saturday's Prediction of a 2.5% S&P Bounce Just Printed at 1,100 on Very Light Volume; Cash Should be King Right Here, and Aggressive Traders Should Consider Going Short ...

Some short Option candidates to consider (all symbols are clickable for more technical information):

ISRG at $334
AAPL at $195
FSLR at $118
GS at $156
RIG at $89
OXY at $80
POTC's 2.5% S&P rally has unfolded, we now believe aggressive traders should be in cash and more aggressive traders, short. An S&P pullback to that gap at 1,016 could send the six aforementioned stocks down 10% rather quickly.

We remind you of the importance of capping option losses at 15%, and accepting them as part of a disciplined trading strategy.
There will be plenty of 100%+ option trades in the future, and the only way to experience those future winners is to stay in the game by managing losses and trading small.
No long-term successful trader holds losing trades without either an electronic or mental sell stop/limit.
Trading losses must be managed, and the 11 Commandments were designed to make sure you never fall in love with a loser.
A fine trendy Tuesday is wished to all subscribers from the entire Psychology of the Call team.

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