Tuesday, April 12, 2005

Escape Hatch

I entered this morning completely short - about 30 different positions. Lots of puts, lots of shorts, lots of exposure. The market was dropping again, but I was getting the sense that very short-term, the drop in the market had played out. So in just a few minutes I covered every single position I had and went completely flat into cash.

As you can see from this graph, I exited at the arrow, and it's a good thing I did. Minutes from the last fed meeting sent the market flying skyward.

1 comment:

Tim Knight said...

Unfortunately, this little blip up was the perfect time to short them market. Once it pushed up due to the Fed's minutes, it started falling for days, with no turning back.