When to Buy at Market

The day after Easter has been down 10 of the last 15 years, but up 4 of the last 5, with a 1.8% increase in 2008.

On a full moon, despite massively bad unemployment figures, last Thursday the market rose 242 points. This, with a bias of 0 just the day before, meaning NO bias, to a count of over 8 to the call.

We'll list new Dow projections this week, and hope to continue our successful run up with profits. It takes a strong discipline to follow the market for instantaneous moves right now, with the type of volatility we have.

1 of very 4 credit holders have seen their credit card interest rates more than double in 2008, with 2009 now planned by the banks to take the "low intro rates of 0 to 1.99%" they SELL to the consumer, and then utilize a clause in the fine print that allows them as much as a rate hike to 29%. Usury. An amazing statement on who is really in charge.

With this, the best news we could have is that Wells Fargo, who took TARP relief of 30 billion last October showed a 3 billion profit in the first quarter of 09. The normal American IDIOT will now take this as "look, they didn't even need the money" when in reality they are now making plans to settle their entire stimulus debt by year end if profits follow projections,and Wells Fargo may be our first banking success under the new game. What is important is that most of us will see this WRONGLY, and think the banks did not need the money.

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With the recent volatility in the market sometimes buying an option “below or at prior day close” can miss on some fast gaps up or down at the market opening.
We follow a strict “maximum price to pay, larger second buy” strategy based on the normal rebound of options over a short 4 day period, an OEX study and approach for many years.

We are finding success in “buying at market” to a prevailing signal, when the count is strong, at the open. This means buying above prior day close. Some traders limit their buy ups to 10 to 15% above prior day close, while risk traders are buying “market” at opening, both looking for 33 to 45% profit goals, typically same day.

The risk to this methodology is that exhaustive gaps UP or DOWN have historically hit support and resistance lines and moved back dramatically. With current market conditions we’ve seen more strength to a move, thusly allowing these quick profits.

For traders that want to use our signals with these revised entry points we suggest only doing so when futures are + or - 80 points, and that there has been strength to the future trends in the opening market. I begin checking futures at 4.30 a.m. EST and again at 6 a.m. and 7.30 a.m to see how the mood of the market is trading.

Many traders ask me where I make my most money in options. I’m best, when in the right mood, at simply "falling in love with an option." This means following one option only, and simply watching the bid/ask and the Support and Resistance lines. It’s all I do.
No news, no input, just soft music and day trading for .50 to 1.00 a contract after I know the “mood of the option.” This works well in conjunction with following our normal day trade to 4 day signals.

Today’s market requires true control of emotions, and the ability to take losses, as the type of 200 and 300 point moves we have been seeing in recent weeks are impossible to predict.

Study the approach we have above about buying “into the market’ on strong bias days and taking fast risk.

And work with me at any time to identify how to “fall in love with an option."

We are listing both put and call as trade, with 6 to call as the bias. Make specific note, however, that earnings come out this week and it's likely for us to see some ugly numbers.
Whether the market remains euphoric is the key question; any "news catalyst" will trigger the market.