The Market Opened Right to our Support Line

The market yesterday opened right to our support line at 9176 before beginning hesitation. We re-calculated the Dow at 10.30 a.m., sent a Twit to all subscribers, and then watched the market struggle between s1 at 9228, just below 9250 which acts as support and resistance, and struggling to hit R1 at 9309.79. The detail to our projections are important now as it is harder to make money trading without watching tight profits on the low VIX we have. Subscribers fortunately bought the -OXBTN OEX.X AUG 2009 470.0000 PUT at 8.60 or less on Monday, with sales to highs of 13.10, simply by following s1. This is a one day profit of over 50%. :)

Some subscribers bought in at market opening and also reported up to 2.00 per contract profits. This brings our win ratio to 19:3 right now, and prudent traders are watching the market and our Dow projections carefully.

Prior to FOMC babbles at 2.15 p.m. there is typically a retracement, and around noon EST a lull where the market beings to drop, before rising around the FED, and whipsawing in the afternoon.

For long term traders with OEX we often see it as a dual trade profit day. With the market as it stands right now there is strong upsurge potential that could move the market to 9500 up on any good news, as VIX remains low and each afternoon, for whatever reason, the market is buoyed up.

Bollinger Bands, which are simply band views of VIX, are tightening, a clear sign something "big" is about to happen.

So, as we list two trades for FOMC madness day, note the extreme high risk to an overbought market that doesn' t stop, and a series of technical indicators that are all being shred, as they have not handled this length of a trading range.


Here's step #1 in the need for additional stimulus money:

http://online.wsj.com/article/SB124970470294516541.html

And here's the reason for the Fear and Greed, and the trade range market:

http://online.wsj.com/article/SB124990251697719147.html

Floydian Therapy: Many new subscribers have asked us about this service. For traders wanting to work on the emotions behind the decisions that lead their trading, and their lives, we offer a unique email service with a transpersonal psychology approach from our classical training. View a video on Floyd on this: http://www.oexoptions.com/FloydTherapy/TheBlankScreen.swf or at http://www.oexoptions.com/pages/FloydianTherapy.html



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