Thursday, February 25, 2010

As One Reflects...

By 10.45 a.m. our March525 Call had returned 40 cents per contract from opening buy, below prior day close, and had returned even more for traders that held this issue longer.

As one reflects on each move of the market this week in comparison to our Dow projections it's easy to see where the support and resistance really takes off, and the controls come in that stop the market. Any good news is immediately hit with bad news, such as consumer confidence yesterday. We have yet to see what impact Toyota will have overall on Japanese exports, but it will be ugly, and many of these cars are made right in the U.S.
We will not open the week with a new trade EXCEPT for any risk traders that choose to hold our April put for a longer time period, and that is so noted in our instructions.

The market spiked up before Bernanke delivers his semi-annual report on Monetary Policy to Congress. It has been typical for the market to massively whipsaw during this time period, and as we entered we saw the market begin to just hold steady.

Smart traders always know to have their sell orders in at all times, and that bid/ask are not part of your thinking, but what price you wish to pay and sell for.

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