Articles

Those who did not short sell the market may be smarting but there is still risk to the downside.

Some readers may recall my recent interest in the sugar market and the potential for a large bull move in that contract during 2004. The sugar market rallied quite strongly off a low in February 2004 and topped on March 24.

This week has proved to be a very interesting week indeed. I have had the pleasure of watching the markets go by from Singapore and two things have dominated the news here. The Dow Jones rallying and holding above 10,000 points and the price action in oil hovering above the $40 US a barrel.

Last week we discussed the pros and cons of covered call writing and the best circumstances to apply the strategy. This week I want to touch more on a topic I have mentioned briefly in previous editions.

Wish you had shorted the market? Well there are times when many a trader wished they had, but by the same token, if you had then you may well have wondered about the wisdom of doing so.