trading the news

Trading the news isn't always the smart move.

Today I read to my S/O the information from Briefing about MON. It read: " Ag/potash names strong off the open (MOS +2.6%, IPI +2.3%, SQM +2.1%, POT +1.5%, UAN +0.6%, DOW +0.5%, CNH +0.3%, MON +0.3%, TNH +0.3%) :"

Now one would think it would have been safe to trade MON on a call with this type of info but that is not what the chart read.

I do not trade mixed markets as a general rule and I was not trading this one @ 9:51 this Monday morning BUT S/O is a gun slinger and he bought MON... 13 August $97.5 PUT contracts @ $2.32 and sold @ 11:08 for $2.99 for $988.23.

S/O uses the 55, 21 and the 3,5,and 10 E charts.

Then S/O saw the reversal and traded MON up and made (was up at this time) a little over $450.00.

Add on.....Whoop's I thought he left the trade. He is still in the trade @ 12:33 and considering exiting with a profit of $1200.00 minus cost of 30 contracts.

As I said he is my gun slinger. I am far more reserved.



Edited 1 time(s). Last edit at 08/12/2013 11:35AM by Darcy2.

I am sitting here beside my S/O and asking him what did he see in MON to do a call? He says all he saw was the 5 crossing the 10 on the 5 E chart. He now sees the 5 crossing the 10 @ 1:04 PM going back down. So I asked him if it was ready yet and he said, "not yet".

This is sort of a blow by blow post. I'll let you know if he gets in MON again. Yes S/O does day trade when he sees a move. Not me...not by a long shot.



Edited 1 time(s). Last edit at 08/12/2013 12:54PM by Darcy2.