Pivot Point Struggle

Yesterday the market was a classic study. Floyd entered pre market with a best buy price of 10.10 or less on our call, and filled at 10.00. Two hours later I had sold off at 12.70 within two hours.

I recalculated the Dow at opening and used these new support and resistance projections to see what were the short term variables. Under this scenario the Dow hit r3 by 11 a.m., and retreated, to regroup around 2.15 p.m. after it had headed back to the pivot point to the middle of the day. For those working with me in "loving an option" I did all of these projections watching only one option, the May 400 Call, which I've bought and sold profitably several times already, around s/r lines.

We continue to believe the market is poised for another 300 point move, and with more bias to the call. Earnings are showing mixed results, and the mood overall remains optimistic, despite a myriad of opinions and data.

However, watching the pivot point struggle, we may begin to now see whipsaw and we'll make special note within our Dow projections of stopping points.

So, two signals, but the bias to the call. Let's keep our winning streak going.

Thanks for your kind comments, subscribers, on the Circle of Pain article we're sharing this week. It should help you understand the emotions that are part of your day to day trading, and why.



Floydian Therapy:

More on the Circle of Pain. Full article at : http://www.oexoptions.com/FloydTherapy/CircleOfPain.pdf

Let’s create a few examples of circles of pain that you may know well.

The Circle of Pain
“I can’t stop picking on my wife, and arguing with her”

You can almost picture how many dramas occur within this circle, from lack of sex, to arguing, to children that are hurt, to a wife that feels abused, and you that feel “not understood.”
There is an anger here that must come up, be “let go of,” or dealt with. It permeates both of your lives.


The Circle of Pain
“When I decide to buy something I go on buying streaks and spend way more money than I should, then I feel regretful, but I go out and buy again. I can’t stop.”

You know this situation. You are the person, or know someone like this. You can’t stop buying things, far more than you need.
You probably do this because you feel empty, and are “filling yourself.” Depression.

The Circle of Pain
“When I trade in the stock market, or options, I always buy at the wrong time, and sell at the worse time, and I lose money all the time. I keep trying, and sometimes I make money and then am invincible and very greedy, only to go back to losing money, way more than I can afford to lose.”

This is many investors, as the average Joe is the culprit the market makers use to control the market, and investing becomes desperation, or addiction. Emotional people trade logically, and logical people trade emotionally. All people, and the market itself, is driven by:
-cause and effect
-fear and greed
-supply and demand
How you react to the variables within your emotions defines your logic in the market.


If you are interested in learning more about Floydian Therapy:

Write me at : floydiantherapy@gmail.com
Sign up at: http://www.oexoptions.com/pages/FloydianTherapy.html