Yong-Long Lai

Today was an up-day in the Market followed by a weak up-day on the US market and UK market over night. I have no confidence in the market for the next few months. In 1987, the market corrected 25% in 4 weeks, currently we have corrected about 10-15% in 2 weeks. Usually after a correct, the market consolidate for a couple of months before returning to the ‘high’.

In my opinion, if you want 2 weeks the market will either bottom out by falling another 10-15% or stay exactly where it is, ie consolidating. If the market falls in the next 2 weeks, it will consolidate for 2-3 months by trading sideway before making a very aggressive run (ie. i’ll be bullish in the market) If the market stays at these levels in the next 2 weeks, I’ll still wait until there is a clear trend change (higher high & higher lows – a.k.a. xyz or abc)

Initial Trade  13th July 2007
Received 0.115

Roll Out Trade 25 July 2007
Close out initial trade for 0.135 and
Opened another trade for next month for 0.135

Close out Trade 21 August 2007
Close out trade for 0.22

Total donation: 0.105 per option ($1,896 including brokerage)