Saturday, April 25, 2009

ETFs, not Stocks for Your Covered Calls

That's the tip of the day from Mr. SR who makes a tonne of cash in the market every day. When you buy ETFs, the volatility is much lower, so you're safer.

My information from the morning is that people think we're at the start of a new bull run. Hmmm... I think we will see more upside because there's some catching up to do to the 200 day MA's but after that, we'll definitely retrace atleast to the old lows.

Will we ever see 5.87 on GE again? SR - No. Me - don't be so sure. When a stock like that tanks, how do you know what the support is? We know what resistance is, but a support hasn't been established yet. We're probably going into a sideways market for a few months. But, in time, you'll see another downtrend and we'll test the support level.

I can only kick myself when I pull charts up - RFMD - sold at 0.75!