America Loves War

For all the fear over Dubai and the default, the market opened without a bang in early trading, and promptly moved up over 31 points by 10.16 am. Like clockwork we were able to buy the December 500P for 5.80 on the first drop, and sell to 6.80 to 7.20 by midday for tight profits.
The Dow again reached 10,404 in early morning trading, and settled to lows of 10,223 before meandering around for hours. It's proof the bears believe the market will soon fall, but a 68% rise as we have seen typically takes 108 cycle days of downside, and it's unlikely to see a complete fall out.

America loves to kill and loves war, so how we react to Obama's "dithering" when he announces tomorrow night will also influence the market, just as the situation in Dubai has.


What many of us do not realize is that the world is only as we know it, and that does not mean it is as it is. We see only what we are able to see, and know only what we know.

This sounds so simple, and so obvious, yet remains the core of our issues as a a world people. It begins with "the world is flat" and now with electronic newsbites tells us that "two people crashed Obama's party" and we become interested in the security of the issue, or that they are "wanna be" reality TV show stars. This takes us from our real thinking as a human, which is to be better, help others, love, enjoy life, and perhaps learn more about ourselves, or the world.

When we trade options we are choosing a directional bias, and analyzing what "strike" point will be best to buy at a best price for us, from others, and how this "strike" will trade against the market and if we can get a premium price when we sell it. This is playing poker. Selling fruit. Buying and selling flowers.

Our goal is to take advantage of someone else. That is option trading. It is also an art of personal zen, as you are trying not to be taken advantage of. Even by yourself.

Over the next 10 days I'll be sharing with you "Weaving Straw Baskets," 50 rules of life I use in trading:

Weaving Straw Baskets-Fifty Steps to Understanding

1) A rock is not hard.

2) We only know what we know.

3) We do not know what we do not know.

4) There is no real such thing as “I”

5) There are people that do not read at all, and many people that do not read well.