Tuesday, August 01, 2006

Further Downside Risk?

The stock futures are off this morning and in recent days the Bank of Japan continues to try to reduce its money supply - a move that has preceded market slumps in recent months. A news releases on personal consumption spending is due at 8:30 EST which should give the market some further information on economic growth and inflation. If the downtrend is confirmed I will likely buy more put options in my Roth IRA account that is currently 90% in a money market account.

Update: 4:58pm

I added 5 QQQQ $39 August Put contracts... I reached a milestone today. Finally, my QQQQ trading over the last several years became profitable. As Investment of course it was lousy. But It helped teach me to trade. Next goal is to regain all trading losses on my US trading account. That's going to probably take a few more months of successful trading to achieve. Currently the model is predicting that the trend will reverse to an uptrend the day after the FOMC announcement next week.

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