Wednesday, October 2, 2013

The markets are broken, I tell ya!

This is my opening link, from none other than my favourite website, Zero Hedge.

http://www.zerohedge.com/news/2013-10-01/government-shutdown-craters-gold-sends-russell-new-all-time-highs

Best quote of the day:
The Russell 2000 closed at all-time highs with the best day in a month (up over 2% from yesterday's lows)... on the day the US government shutdown for the first time in 17 years.
As they have rightly pointed out... WTF?!

The markets are seriously broken. With the government shutdown, shouldn't stocks go down as well? But no, they didn't, and I got royally screwed in none other than the Russell 2000 itself. Bloody hell.

In this day and age of POMO, I think this is my new plan moving forward.

Buy low in the morning and ride the POMO up til just afternoon. (POMO Schedule)
Sell PM's before opening and let them get hammered.

Keep stops tights on both, and be aware, VERY AWARE that this shit just got serious, and it might just "fix" itself soon.

Later today I'll be testing out this strategy, willing to stake out a bit more of my capital. I'm already down 20% in my Vegas account, when just yesterday I was up 25%. I'll be willing to go a bit bigger on this theory that I got, knowing now the whole market is a sham and the next big POMO opportunity isn't until next Monday. Willing to drop my account down another 10% today trying to work this shit out. Aiming to reduce my total lost on initial capital to 10% instead of the 20% I've got now.

I need to keep reminding myself to wait for the right opportunity, when many more variables and factors are in my favour, instead of really going out and gambling on the whims and fancys of the market.

Like I said, it's broken I tell ya!

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