Covering My Short Trade Here
On April 1st, I wrote that I would sell the big rally that occurred on that day. And that is what I did.
Right into the teeth of the “Bear Stearns Bailout/The Bottom is in” euphoric monster rally, I shorted SPY at $136.28 (at 3:32pm on April 1st.) Two weeks later, “gloom” has become the word of the day this Monday morning, so I just got done buying-to-cover. I like to buy gloom and sell euphoria.
At noon, I bought in my SPY short position at $132.92. So, I made $3.36 a share for a 2.46% return. Not bad, huh?
I’m going to be pretty busy, so I don’t know if I will have enough time to study the market closely enough to make good trades. I will post when I make the next one though, whenever that is. In general, I don’t think the bottom is in yet, but of course, the market usually doesn’t go up or down in a straight line.
