11/27 the markets are getting swatted by the credit issues, bank wright downs and subprime sludge have a hold on the markets making for volatile trading and much uncertainty.
This morning we get news out of no where, Abu Dhabi, think Garfield! They are injecting a few billion into Citi bank, a troubled super banker. This established a little faith in US markets and investments and brought the bulls into the game.
The Point:
When you feel like you figured out the markets and want to pick a direction, something from Abu Dhabi may come out of no where and knock you upside the head.
Application:
Keep yourself hedged to the upside and downside, don't use naked options, manage your risk accordingly, plan your trade, trade your plan. period.
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