This worked like a top yesterday again. Our pre market instructions were "-OXBHM OEX.X AUG 2009 465.0000 CALL Watch futures. Pay "to market" only if futures up 50 points. Sell for 34 to 43% profits, trying for same day."
The position was available for day traders as low a buy as 7.90, with top sells of 9.60. Futures watchers saw a volatile and "hesitant" futures, whipsawing itself in advance of the market. This call was again a profitable one, and day traders reported two profits on tight .50 contracts.
The market showed us every sign of not knowing what to do. S&P500 has a strong resistance line at 1014 and our Dow projections remain as the highs we see the market potentially hitting. The resistance we saw throughout the day as the market hit our theoretical Dow top at 9361 several times before faltering.
Do calls have more of a range, and could it go on? With the euphoria we've seen and the new high frequency computer trading, it's possible, as the trading ranges are now so extended Floyd is doing new studies in his Point and Figure long term charting.
We'll continue to list a day trade call, and continue to warn of the risk. We count 15 straight call profits now, two put losses. Sum of all parts. We'll continue to hold our hedge put, and will watch for the trigger downturn that will surprise al.
* How to measure effective trading: The size of your winners vs. the size of your losers. It is okay to lose, if you are gaining more J
We'll lead off with an essay we soon plan for a blog at Blue Chip Options.com. Check out what we have there: http://www.bluechipoptions.com/
Two generations of lopsided capitalism. That's how I see it. We've spent 20 years, in various administrations, building an infrastructure of no controls, and the few richer. A study of who got rich over the past 20 years would be a study in what was "done."
We're paying for it, and I still don't believe we even know how deep the woods are that we are within.
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