Daily Report(10/14/2008)

Market opened sharply higher but went down gradually. US Gov plan to buy prefered stock in 9 US banks including citi, jp morgan, wells fargo, morgan stanley and goldman sacks sent bank stocks up more than 10%. I missed opportunity when MS was only $7 last Friday. Now it's $20! I have tendency to be idel after making bad bet. Need to be more business like in the future. Just treat balance as cold number. Be prepared for new opportunity at any time. To do this I need to keep some cash on hand. Currently I should focus on sync trading.

Today's BDI index dropped 167 to 1809. It's amazing how fast and how deep BDI has dropped. But shipping stock rallied sharply for last two days. I think they should have bottomed out. Vale(RIO) is still negotiating with Chinese Steel Association about iron ore price hike. According to umetal.com, China this time is very determined to against the price hike. Vale's CEO however, was pretty confident that China will need them more than they need China. I personally think China will not back off. Not only because the overall economic environment is deteriorating in China, but also because Chinese people tend to be more irrational. If offended, they will revenge at any cost. It's interesting to see how it will develope. China has halted iron ore imports from Brazil and has no plan to reopen the imports in short time. I think it maybe time to short RIO and long BHP or RTP. RIO will have quaterly report on 10/23, need to see how they say about the situation.

Today DOW ends up down 76. My portfolio managed to post 2% gain. MOS, AGU has big loss. I don't know why. But both opened up big and closed down big. Need to follow more closely and trade more actively. Even though BDI drop a lot today, shipping stocks again post big gain. It may because there were oversold, another reason may be short squeeze.

Today did sync trading on ETH-LEG, POT-TNH and RPT-BHP, all made small gain. But I'm realy lucky to avoid big loss. Seems I need to be more careful when double position and be less greedy when take profit. 1% profit is pretty good. Also seems there're more opportunities in first trading hour. Need to determine trading candidates previous day and monitor closely next morning.