Never Look Back

The week after September triple witching the Dow was down five in a row 2002-2006, with heavy losses in 2002 through 2005. Despite our error on calling a call a put in our new signal, traders caught on and were able to trade the Oct 500 Call for $1.00 to $1.50 per contract profits.

We hold a first hedge position to one of two puts, and will advise selling and stop loss below a bit differently on our hedge position, so take note.
Most floor traders believe the market is poised to run to 9950, or just above 10,050 but it's not yet showing in the results in the market. For example, the PPT did not come to the rescue today, the first of FED meetings comments, and the market only increased slightly. Our manual calculation for the bell curve analysis, "the count" is 2.

Some comments from subscribers:

"Hi Floyd,

We have the 510 oct call and are sitting on a small
profit.
Would you hang on to it a bit longer or sell and go in to some puts?

We don't have enough money to buy both ways at the moment" JC

Floyd-> Always be willing to take your profits off the table, and never look back.


"Today I made my biggest play so far. I've been buying tiny amounts - 2 and 3 contracts. I took a week or two off to watch the market and trade less while waiting for waiting for a good opportunity to make a bigger play. Today the timing was right and I bought 8 contracts of the call at 10:07 am for the day low of 5.90. I sold 7 minutes and 5 seconds later for 6.40. A quick 10% and an extra 400 dollars.

"I have to admit I was excited. My logic in buying at that time: the world markets have a positive bias today, I bought at the pivot point on a quick retracement from dow resistance at 9880, so I expected a bounce up from there. I got it: MR"

"I am doing better on reading the same signal, falling in love as you say. The 500C has returned profits day after day, as I watch the support and resistance lines.
I'm averaging $1.00 per contract, trading 10 contracts, and following the rules better. MBD"


"It was never my thinking that made the big money for me. It was always my sitting. Got that. My sitting tight" -Jesse Livermore, How to Trade Stocks, famed early 20th century trader