Update On Recent Call Positions, Stock Market, and Gold

Tuesday we announced we'd booked profits on our most recent short positions, as we expected a market bounce.

Wednesday we noted the speculative positions we opened in expectation of a market bounce, citing reasons such as the DJIA's 200-day moving average roughly 50 points lower and a 7-month uptrend in effect roughly 25 points lower.

That same day, from 60 points lower, the market bounce began.  It continued Thursday, resulting in the biggest one-day rally this year.  The market is likely to continue higher for at least another couple of days. 

Friday we're up over 100% on the TNA October calls,  up 24% on the November calls, and up 6.5% on the shares.  We've put a stop on those shares at $60.90 and will close all of the calls if the market starts trading down on the day.  The DJIA is up over 40 points as of this writing.

Our "market outlook" postings continue to prove extremely accurate.  For that we thank our good fortune and will be sure to save most of those profits and spend the rest on something memorable rather than putting that money at further risk.

Here's a valuable lesson to consider - successful operators in the market regularly take money out of their brokerage accounts to add to their savings and assets while reducing their market risk.  Unsuccessful operators regularly take money out of their savings and assets and add money into their brokerage accounts thus increasing their market risk. 

If you can't turn a profit consistently with the money you already have at risk, putting more money at risk is a very bad idea. 


We've been asked if we're turning bullish yet on gold and re-loading on related long positions. 

Mid-day August 27th, we posted that we were selling most of our gold and silver speculations for hundreds of percentage points of profits, which were bought in late June virtually at the lows. 

As it turns out, mid-day August 27th was effectively the exact highs for gold's bounce from the late-June lows, and since then the yellow metal has fallen over 10%.  Despite that drop, we do not see compelling reasons to turn bullish. 

Gold can, and eventually will, fall much lower.  There will be bounces and rallies along the way, some probably enormous which will suck in most buyers at the top as has been happening for over two years now, and we'll do our best to call those as we've called most pops and drops in the price of gold, however in our estimation now isn't the ideal time to speculate long or short in gold or silver. 

We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


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