Tuesday, April 17, 2012

Ouch

Well, the first major setback of the year.  Apparently, someone thinks we've hit a bottom in copper/China.  I had a short position on it but closed it when it started to rise quickly.  The price went parabolic, going up 1%+ in ~ 30 minutes on no news.  So I shorted, with a lot of leverage, but it looks like the speed and size of the move caused a lot of other people to cover their shorts and the price continues to move parabolic.  I could see this price movement continuing for a while - long enough for me to get a margin call - so I closed my position at a sizeable loss.  Let's see what happens tonight and tomorrow with the Spanish housing price index and the Spanish and Italian bond auctions...

Short copper, loss of 12.7%.


Update: Made it worse.  There is panic-buying (short covering) going on right now.  Going to step aside for a while...  Loss of 18.1%.

In retrospect, this is still frustration trading from missing out on so much of the shorting opportunity that I was waiting for.  Safe to say I'm on tilt right now.

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