The Wrap 5/6/10

{+++}Wild day, for all of us. If you are a salty veteran trader you witnessed more history. If you are a newer trader, maybe you were scared, hard not to be. As traders, we all need to feel that we are in control, because we use stops and use money management to try and control risk. When the market drops 1000 points fast, you get the feeling that you are in a 737 that has lost control. Helpless. I think we were more short than long and I only wish that we were more short, but what can you do.

Charts are meaningless right now, I’ve been here before, trust that. The market will now have¬† a series of huge ups and downs. It will rally hard to the upside and it will give you the feeling that all is good with the world again, but that is probably going to be met at one point with aggressive selling, unless this was “the bottom”, it could have been, but I doubt it.

I know many of you trade your own ideas and come by the site and the chatroom as another idea source. I blogged last night, or the night before to reduce size and tighten stops as I thought we were in scary territory because of Europe and Goldman having their problems, but I never anticipated this.

I would be a complete liar if I gave you a read on how we will open tomorrow, but I do know from looking at the P&L this month, that we are in pretty damn good shape compared to the rest of the world tonight.

We’ve talked about UYM and AAPL and I am still long AAPL via short the May 230 and 220 puts in case you are too, The stock thankfully recovered today. I am still long Apple via that option trade. As far as UYM goes, I have a little, and frankly haven’t even figured out my average price, but it is in the low 30’s. I am holding that as well, and that was never a day trade anyway.

Watch the Euro tomorrow as English Parliament is faced with a possible “hung” vote. Not good.

I think we are in excellent shape going forward, whether it’s to short more or get really long. Tomorrow is Friday and the unemployment # comes out, so there are no names tonight. We all need a day to just watch.

We do ave some lingering shorts, SCHL and QCOM. Pretty flat though for the most part. Perfect.

Have a great night and extreme caution rules.

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