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Trading Results 8/2/11

Not a whole lot to report today.  I traded gold back and forth as I received a short sell TD Combo 13 on the daily chart. The last time I see that it had a 13 it opened higher and then fell hard through the day.  I would expect about the same tomorrow or very soon with gold. It is next to impossible not to read about how strong it is and when that gets combined with the fear that has taken over the market, we are setup for a correction. So my short with gold will be a combination of collecting option premium and hopefully some directional movement downward.

After seven down days in the overall stock market, I would believe it is more likely than not that we get some bounce either Wednesday or Thursday. Congress is leaving town so they can't mess anything up for a while.  Even if the dog and pony debt show made just about everyone roll their eyes before it was done.

I entered a little early with the gold trade, but also did an option hedge on half the position. I will likely hedge the rest tomorrow and try to collect some premium and maybe even get a chance to watch it pull in sharply before I do.

I am very interested in COCO at the $4.00 price and will likely begin another long position via shorting puts if I get time tomorrow.