A little commentary as the markets tank

Yesterday was an interesting day for me in trading as I enjoyed getting to spend most of the day trading even if it was not profitable.

Today would have been a better day to have been trading. I heard how the Asian markets were dropping on the radio. I am not one to trade on news but that was news that is very sweeping as it went on about the lack of enthusiasm of investors in the bailout packages...no surprise there. This was just a setup for the drop anyway.

While I am unable to trade this morning I do look at my charts every once in a while and I see that my Global Gold index is down to the last support line that I plotted for today...I still plot even if I am not trading. That makes a $22 drop which is very large for 1.5 hours of trading. So anything further is off my charts.

I did quickly check to see potential profits based on using my trading rules the same as yesterday. I would have captured 3.1% profit in the drop in 2 trades and perhaps made one trade that would have broke even or lost 0.1%. So 3% leveraged through the ETFs would be a 6% profit less 1% for commissions...this is my quick way of determining captured moves and it is really rough. There was one early one that I might have tried for, it was one of the first large moves but I won't count it.

5% of $8 (the ETF starting price) is $0.40 per share at 400 shares traded is $160 net.


Yah, it would have been a good morning to be in.

Jeff.