By 2.15 p.m. we had simply repeated yesterday. It's important to know the market mood before the 3 pm clamor. We'd hit a high of 10,144 and a low of 9952, literally repeating yesterdays support and resistance lines. As I begin to write the alert today we're seeing a sudden 60 point downswing, within a minute. I've noticed 40 point jumps in just seconds, up and down, a number of times, a sign of bulk buying/selling and institutional moves, or electronic moves.
We continue to believe if there is more bottom it will not last long, and the doomsayers will be babbling as the market short term rallys, with the same 10,200 and 10,400 range resistance area stops.
By mid afternoon our 500 Call had moved only to a high of 2.50, and the 490 Put was a great play, buying under prior day at 4.60 and selling to 6.60 by late afternoon. The market is struggling to know itself, and VIX is fluctuating.
Most traders sold the put off profitably despite a trade range bound market. We'll hold the call as a hedge, keeping track of our past profits, and watch what's next in the topsy turvy world of finance.
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On our homepage www.oexoptions.com we list an area of books we recommend, which you can order from Amazon right there. We believe all traders should read Dorsey's Point and Figure book at least three times, and begin charting with any of the online pnf charting services. www.stockcharts.com is excellent and even has a tutorial of point and figure.
In our password area on the website are many Floyd videos. Take the time to watch. I've got some great news-bytes of special tips, and try to explain what we do and how we trade.
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