Monday, October 24, 2005

Markets in rally mode



It was nice to see the markets rally today amid so much negativity. I guess people are realizing that the economy is not as bad as everyone thinks it is after all the good earning reports.

Today, I made a daytrade on Electronic Arts (thanks to dttong for the heads up). The reason why I didn't hold it is because I think the Nasdaq is overbought and because there is a lot of resistance overhead. The markets may continue rising in the short term, but I am satisfied with today's gain.

For this reason, I also sold my Cameco position today, although I regret it. Energy stocks have sold off a lot recently, and this is the time one should be buying, not selling. The reason why I sold was because I wasn't paying much attention to the markets during the day, so I played it safe.

Going into the close, I placed an order to buy 20 contracts of the QQQQ Nov. 38 call @ 1.30. To my dismay, 3 contracts got filled at that price. Although the QQQQ call option is now at 1.5, I would rather not have this filled, because it is such a small position. It's a good thing I used my Tradefreedom account to buy this position (instead of Etrade Canada), or else the commission would kill me.

After analyzing the markets after the market close, I want in on Energy again. I am now tracking the XLE.

1 Comments:

Blogger Emini Day Trader said...

Nice blog. Keep up the good work.

Regards,
Emini Daytrader
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6:25 AM  

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