Home > Lessons from the trading floor > 2nd week of 2009!

2nd week of 2009!

Second week of trading for 2009! Here we go… everybody has been ready to go setting goals for trading, and making sure they start the year off on a good note. The best place to start is making sure your goals and your plan are compatible with each other. Then you have to make sure you stick to your plan. At Keystone, we have been pounding the table with traders, and ourselves, to make sure we are ready and prepared for this year.

As for the markets, we are still carrying plenty of issues from last year. The financial sector continues to be in the limelight with TARP II coming into the discussions before the start of the Obama inauguration, congress is trying to get it to vote by this Friday. That will also be options expirations ahead of a long weekend, since Monday is a day off. If the congress is able to pass the TARP II, it will be interesting to see the restrictions that are imposed to financial institutions, and how the stocks will react to them. It will also be interesting to see what if any restrictions are placed on where this money can be used, remember that TARP I was spend fast and without any real plan.

Nonetheless, with all the uncertainty still left, the VIX index has come down as leverage has come down in the equity markets. Cash positions are relatively high, historically, so for now we do have lots of investors on the sideline. This bodes well for intra day traders, since order flow becomes easier to read and follow.

The year started better, with clearer order flow… Let’s keep our New Year’s resolution and stick to the plan and our goals will follow suit.

All the best for 2009!


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