This Marks Our 25th Straight Call Profit

From Advanced mentoring student MR:

I guess there is a lesson learned along with this week - it ties in to "there is no black and white" We have rules we follow when trading. The market does not realize that we have rules. It is going to act in it's own way and won't always blaze a path that allows us to follow the rules. Sometimes it's going to be "messy" and "fuzzy" or downright dirty - but you have to pay to play. You're not going to make money if you're sitting on the sidelines waiting for the perfect "discount" buy price - especially if you intend to play the hedge - you have to play the trend to some extent just on the principle of the matter.

Friday we saw the market hit theoretical Dow tops of 9559. Our Dow projected tops were 9529.75, so we've hit each of our Dow upward projections, and last Monday hit the one downside move in consolidation.

With the slight sell off last Monday we saw a strong support line emerge at 9116, and 978 in the S&P 500. Friday the S &P exceeded its' two top resistance areas at 1014 and 1022. Our recalculated Dow projections for the day Friday showed 9609-9689 as the next potential market tops.

The option we have "fallen in love with" is -OXBIO OEX.X SEP 2009 475.0000 CALL, which we were able to buy as low as 8.10 in early trading, and sell to highs of 11.20 by day end. Many traders sold out at our projected sales top of 7.90 while others followed our recalculations and held out through the day for the maximum 38% gains that were possible.

This marks our 25th straight call profit, with three hedge put losses. We're far ahead.

Which leads me to the key question those of you that have not hit these 25 call profits have? Your question is: WHY did I over invest in the puts, WHY did I not play the calls, and WHY did I let my own opinion influence my trading?

The question is also your answer.

It is KEY that we do NOT believe ourselves, and what should be, but instead what is.

As an example, I am an experienced 31 year trader that actively believes the market is massively high risk and overbought, yet I've personally played 23 of these 25 calls for profits.

The market is obviously at an irrational top, from manipulation, high frequency trading, or pure investor euphoria-perhaps all.

It's also following Fibonnacci to the T, rising near it's second level (our predicted overall 2009 year top at 10,400 to 10,600) in massive velocity TOO fast moves.

Following Fibonnaci we'll now retrace 38% near our projected tops, just as soon as all of us believe the stock market is healthy again.

But regardless, and this is the key, TRADE the conditions. Be contrarian by nature, and suspicious of false facts but play both the trend, and the reversing of a trend.