Tuesday 09-18-2007

It is a big day. I have a plan to play it in neutral. Basically, trade it in the both sides after 2:15 pm.

It is 1:50 pm. Unfortunately, I won't be able to make it since I will have a meeting at week. This time, the market has been up, though it is leveled a little bit. Most likely it will be up and down right after the announcement. But the direction should be continously up. So my guess is that the market will be down first, then up.

The fed cut the interest rate by 50 points, and lower the discount rate again. So, it went up 300 points. there is no down turn at all. What a day!

I loaded up buying some orders but due to the work and interruption, I didn't acomplish as what I planned to. In addition, Ameritrade broker accounts were frozen. Next time, just use the market order.

Play Defence this week. Confirmed before any actions.
The fed will cut rate at 2:15 pm on Tuesday. It is widely expecting the market will sell off. But history indicates right after the fed fund cut, in 3-6 months, the market will up average 10%. So who knows what will happen on that day. My strategy is as follows,
Before the fed announcement
1. Sell calls whenever there is any chance with profit ;
After fed announcement on Tuesday and Wednesday
2. Buy 10 contracts of Jan 2008 calls of QQQQ and SPY on Tuesday and Wednesday on any dip in yuedongr2y.
3. Trade HOV options between $10 - 13 in renshan2735.
4. Trade Oct calls for AAPL, GOOG, AMZN in the range.

Actions tomorrow plan:
1. Tight up trailing stop on HOV;
2. Unload options;
3. Buy on dip;