The Market Already Knows What It Wants To Do

The news of the day ,the summary:
CHINA LEADS GLOBAL RETREAT -- INTERMARKET REVERSALS RAISE WARNING FLAGS -- MARKET IS OVERSOLD SHORT-TERM -- BUT WEEKLY MACD LINES HAVE TURNED NEGATIVE -- THAT INCREASES ODDS FOR A 10% CORRECTION


A correction may well be in that offing, as the day ended with no gains to the market, and increasing gains for a larger and deeper downside.

“There is only one side of the market and it is not the bull side of the bear side, but the right side.” – Jesse Livermore, early 20th century stock trader and speculator.

One of the primary things I teach, the hardest, is this. It does not matter "who is right" or "that you are right" or that "the market should have done."
It's betting the side of the move, simply put, and being on the right side of the bias.
What YOU think, what the NEWS says, or worst, the talking heads, is just an opinion. The market already knows what it wants to do.

This is the hardest lesson there is to learn.

Yesterday we saw initial hesitancy, allowing any new buys to the call OEBBE at 1.70, selling to 2.30, but again even on upside OTM options remained low volume. We have an open hedge to the put, and a new buy to the call. TAKE TIGHT PROFITS. This is a very very nervous market.

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President Barack Obama delivers his State of the Union address, Geithner testifies about AIG, and Boeing, UAL, Norfolk Southern and Caterpillar report earnings.