We are Truly on a Roll!

We are truly on a roll! After record profits Monday on both open puts, we hit well on the May400C today, reversing the downside, with buys as low as 8.20 and sells as high as 10.30 by 2 p.m.

Traders reported nice 1.50 per contract day trades, and later .70 moves on this option as the market hesitated. The fact that the downside was slight, and tight, and that futures were very "flat" made traders not take entry to the higher risk put.

We are trying to report how the market has moved recently up until the 2 p.m. hour, as we notice we can often day trade profit before this period, leading up to the "3 p.m. run", that with index options runs to 4.15 p.m. EST

The market hit 7972 and lows of 7741 in trading by 2.15 EST, with an almost immediate return to upturn.

Gold gained over the past few days, a sign of uncertainty on the USD, and rising demand for gold in India. The IMF just gave the U.S. the most scathing report one could imagine, that simply tells us we we will be nationalizing and paying off our sins for years, with no choice. George Soros, my idol, made billions shorting the market many times, and he believes the market is not yet healthy, and we have more to "learn" about what has been done.

Earnings reports are muted, but financials are showing that "this might work," and Obama hints brilliantly through Geitner that there may be more money needed to be spent. Floyd believes our government will be spending much more, and that we all will be paying for it and that it's all good......a complete reversal must take place than a financial sector run by scam artists controlling the money of the world, leading even the price of oil, the core resource we're now only beginning to "deal with"

Soros is dead right, as are the bullish that see the upside. We think this upside will come first, and show even more optimism, short term.

We will take a break from our Circle of Pain article today, available in full at: http://www.oexoptions.com/FloydTherapy/CircleOfPain.pdf

Subscribers to our Advanced Mentoring or Floydian Therapy services make full use of articles and thinking like this. At OEX Options we are here to teach you the nuances of trading, and of yourself.

We believe stock trading is emotional in index option trading, and can be used to our advantage. Formula or auto broker does not work because the subtleties of the bid/ask and how to "play the other trader" to buy up, or sell down, are a great part of index trading.

When trading index options we are actually trading against others emotions.