Here I was, pondering where I would go for my first NYC Michelin rated restaurant experience since like many other traders, I was quite confident a Santa Rally will be imminent - as in every other year before us. Now, I'm not so sure, though if the Eurozone was truly doomed, I wonder why we aren't seeing the 1.18 level we last tested when all sell broke loose last year? Pray tell, Professors of Worldwide Finance!
VIX tried to get past 33 towards the final few minutes of trading and for the moment, it seems to be breaking past that resistance towards higher ground. Will we see a further push tomorrow with Unemployment Claims and Philly Fed on the horizon?
I ended the day in pain as CENX (-6.41%), JRCC (-2.91%), TGB (-3.12%), and the newly added WNR (-13.53%) all broke new lows at once. An investor has 5 days to meet a margin call before their broker can place them on the chopping block. CENX and JRCC have been falling for about 5 days. Will we finally get the rebound that I so desire soon?
I declared my intent to day trade yesterday, but failure marked this attempt, exacerbated by a bullish stubbornness that has suddenly overtaken any prevailing logic that has ever guided my trading - if any. The ultimate stab was letting go of HERO too early yesterday, then picking up WNR right before it fell some more.
As I study my entries more carefully, a very interesting pattern seems to be evident. My CENX, JRCC, TGB, and WNR entries were all made below the $0.50 levels on retreating price levels. This seems to be the hallmark of my weak foray. I wonder: if I had chosen my usual evil $0.99 levels, would I have a better chance at redemption?
Thank the Lord that I am still about 46% cash, which leaves me with enough capital to fight back with several bullets if necessary. But I'm not going to feed the downwards frenzy unnecessarily. My eyes will be on VIX and maybe even DXY.
Personally, I think that a stronger dollar would indicate broad-based demand for US denominated assets - including stocks. With oil prices so strong, it's only a matter of time before other resources start to rebound.
-2.35% SBA
-2.94% Roth IRA
-1.58% DJIA
-1.73% Nasdaq
-1.66% S&P
-0.15% FTSE
+0.04% Eurofirst
+7.34% VIX, breaking past resistance at 33 by a slight margin
36 is the next level I'm watching on VIX...
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