Whipsaw and Volatility are Exhausting

Whipsaw and volatility are exhausting. The market opened with fluctuating futures leading to an immediate 124 point drop to 9650 by 11 a.m.

For traders that owned the July OEX 450 Put, it's a great story. The prior day close was 6.60, the put was available as low as 5.70 (below prior day) in early morning whipsaw, and hit highs of 9.00 by 11 a.m. This trade was possible, often within a dime or twenty cents, in easy trading. Typical profits were over 50% by 11 a.m! WOW. We hit it!
As the Dow hits 9650, off we go whipsaw and begin moving....and the day, at least the morning, was a roller coaster. Enough for old Floyd, settling for a 50% profit, I closed the computer and let it go. A good lesson: the money in our trading has been great this week. We've profited well this week, and we'll just see what tomorrow brings.

By 1 pm. yesterday the market had already started the reversal whipsaw. Sigh.

The OEX falters step by step with the Dow, showing that even the top 100 can't create any pattern.
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We hold an OTM call and have made great money on our last put. Let's hold NO new inventory for the Holiday weekend, and make no other decisions.

Sell on the Call by day end, and we'll end the week profitable on all trades but the call that has made us so much money, and who knows today? Nothing would surprise me now.

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A day of data: unemployment will probably not surprise us at 9.8%, a drop in non-farm workers (census workers now gone), and the market will act worried about unemployment not changing, when it is unlikely to change, in our viewpoint, for some time.

We will see analysis today with factory orders announced at 10 a.m., and the ECRI Futures Inflation Gauge and Leading Index data also out in the A.M.
And of course we've just learned that housing, we are phucked, and it's worse. But really, with the stimulus ending, we have all known this, for weeks, and are making "it" news, and it became a trigger, for what we already knew.

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On the "government's recommendation that BP pay $20 billion in damages, from Investors.com:
"Where is the Constitution does it say that a President has the authority to extract vast sums of money from a private enterprise and distribute it as he sees fit? Nowhere. It says that private property is not to be confiscated by the government without 'due process of law.' If you believe that the end justifies the means, then you don't believe in constitutional government, and without constitutional government, freedom cannot endure."

This is a perfect example for traders to learn from, to understand how false facts and "mis-information" clouds judgment. Sorry to Investors.com, and whatever Tea Party guru wrote this, but here's the Floydian rebuttal:

1. Nowhere in the Constitution does it say to invade a country without provocation, or does it "draft" only certain types of people.
2. The Constitution does not mention lobbyists and bribers, much as work during the writing of the Constitution (by a few guys that when you study them are truly not the "greatest of men," but what we have "historically made them out to be."
3. I believe the ends do justify the means under extreme conditions, and believe most everyone does, when they think clearly and not with some ingrained "bullcrap spiritual stuff" that we choose to interpret as we see fit, such as the "jihad" vs. "eye for an eye" vs. "thou shalt not kill." I also believe BP are phuckers, and we had to steal the money from them, as they stole the environment and livelihoods of millions for GREED, and would never have paid this back. Private enterprise does not work too well in a democracy, much as you may have been led to think otherwise.
4. There are many governments that are non constitutional in which freedom endures.
5. Silly silly people. The Constitution is NOT the word of God, but words of men hundreds of years ago. A country in 2010 cannot be run by these rules, as there aren't even rules for many of the things we deal with. Where's North Korea, Afghanistan, or taxation of tanning salons and cigarettes, in the Constitution?

So to trade....what do you learn? Do not believe this fodder as it comes across the boards, the Palin to compare Obama to Hitler (Floyd hated George Bush II beyond comprehension for what he and gunman Cheney did, but even I would not compare their work to Hitler.)
Do not listen to those that call names, and create their interpretation of scholarly works.
Do not fall for false information.

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Here's an article from Fortune, by Allen Sloan, that paints a full perspective, and may be one of the most important articles you will read this year:

http://www.washingtonpost.com/wp-dyn/content/article/2010/06/21/AR2010062104647.html

Monday is part of our Independence Day celebrations and the stock market is closed. Happy Fourth of July! We'll be back with a lengthy alert for July 6th