Memo to the diary:
He been away for a short vacation with my lovely wife, my son and his friend, my wife's sister and her husband and their two children. A wonderful time in LV. Away from the daily routine. I did not even check the market. Gambling is in LV, the stock market is for investment. Therefore, I don't do daytrading. Went to the show: Sheena Easton who sang the title son of a James Bond's "For Your Eyes Only". She has a beautiful voice, nice band, nice backup singers.
Friday, August 24, 2001.
Dow 10,423.17 +194.02 +1.8%
Nasdaq 1,916.80 +73.83 +4.0%
S&P 500 1,183.93 +22.84 +1.96%
QCOM 66.11 +3.16 +5.0%
Monday, August 27. 2001
Dow 10,382.35 -40.82 -0.4%
Nasdaq 1,912.41 -4.39 -0.23%
S&P 500 1,179.21 -5.72 -0.48%
QCOM 64.97 -1.14 -1.72%
Tuesday, August 28, 2001 after the close
Dow 10,222.03 -160.32 -1.5%
Nasdaq 1,864.98 -47.43 -2.5%
S&P 500 1,179.21 0.00 0.0%
QCOM 62.80 -2.17 -3.34%
The market is still in the cha cha cha mood. More likely will stay in this plus minus 7 to 8 % range on either side of nasdaq 2000. Nobody knows where the bottom is. Some analysts predict gloom and doom and say nasdaq will come down to `1,400. Maybe the same group that predicted gasoline will be at $ 3.00/gallon this summer. I was in Las Vegas, and premium gas was only $ 1.48/gallon, and summer is two third gone.
Learn from blackjack table: dumb move.
dumb move: you have two face cards, the dealer has 10 showing. you split the card. this is greedy and dumb.
In the stock market: avoid the dumb move. The dumb move is usually based on emotion. Many times emotion has an upper hand than common sense. For example: the need to be in the market all the time. Nobody can consistently time the market.
Even with all the books and theories, common sense is the main ingredient. If a situation arises that does not make sense, that is because it is not common.
I will watch the market again tomorrow. If it tanks again, it might be time to sell put. just remember the time frame and reread response #20 (previous post). |
