RE:RE:FOMC stealing the show todayMeritmat:
It was just a trade, so for me that could mean minutes or days.
My idea was to take an oil position pre-FOMC announcement as oil dropped towards strong support levels with all the FOMC worry before the announcement, despite a net inventory drop and Putin's comments leading to an escalation of the war.
FOMC days are great for day trading, as it is volatile, and prices for many things get bent way out of shape, bouncing off the walls (support and resistance levels).
I gave it some room to wiggle, and it went down a little bit more to support, then popped after FOMC. I sold as it started to peak and turn, then turned my attention to SQQQ.
After the initial FOMC reaction drop, since the market had already priced a 75 basis point move, it turned and rose with algos getting on for the ride up. As it reached the high, algos switched directions, and went heavy short, as I did using SQQQ with trailing stops to close. At the end, I believe the market movement was temporarily overblown to the downside, and on support again, so at the end of day, I sold SQQQ and rebought HOU.TO, 10000 shares again for a potential rebound the next day. Will see what happens, it is a trade, so I could be out in a heartbeat, or perhaps it becomes a swing hold to allow it time to play out. Most likely short term in and out if it rises above my entry and starts to pull back.
I usually like to use trailing stops in some short daytrades, but the problem with HOU.TO is that it is not quite liquid enough. The oil price could drop and HOU skips a few cents before there is a sale, which then triggers your stop at market, without the depth. So although you set a $0.10 trailing stop, you end up getting filled at $0.25 lower. For this reason, I manage it manually.
I tend to take short term trade positions when things are stretched too far in one direction or another, and for day trades, I follow the price waiting for a turn, not by guessing which way it will go.
The rush to the USD would normally cause oil to drop, but it is holding up relatively well.
The USD/CAD exchange rate is making dual listed Canadian oils very attractive to buy on the US side, so I may sell a stock on the Canadian side, and buy it back so much cheaper now on the US side to play for a few points more on an eventual currrency rebound, then reverse it back to the Canadian side.
Unfortunately, the downside to that for me is that selling a core position I have held for a while triggers more capital gains tax that I am not pleased to send in to fund the travels and misadventures of sockboy and his clown car of idiots.
Obscure1:
Your crash reminds me of something I know well as I motorcycle around the jungles here.
If you wonder if you are young or old, just fall down or crash, and if people laugh, you are young.
If they rush over to you in a worried panic, picking you up, dusting you off, and wanting to call an ambulance, you are old.
Glad you are OK old man...!
meritmat wrote: Hey Migraine
How long you plan on holding Hou?