This past week the news media has been filled with information about the "death cross," a charting analysis that describes the crossing of the 50 day moving average below the 200 day moving average. Surveyed since 1930 when the death cross occurs, the market is up again a month or two later. As the "death cross" hit the news circuits more "fear" entered the market, we hit more oversold conditions, and finally the market corrected itself, short term, closing the week over 10,000 and actually up for the week.
Study our Dow projections carefully. We've been right on the target for weeks, and this week have narrowed our support/resistance lines in a new analysis.
After last week's 90% plus returns, and no losses, we're here at the table again.
This testimonial may help in your trading:
"Floyd, I've paper traded for over 90 days and by the end of the 90 days was making money. I wish I had listened to you first, before I traded right when I signed up for the service and lost 7k in days.
The good news is that I have learned to Point and Figure chart, and have learned how NOT to read the news, and to seriously question the facts provided us. It has helped my trading.
I bought on both the call trades last week, single buys, only, and turned a profit of over $11,000. I'm still ahead, this means, despite my stupid 'before reading the manual' trades.
Thank you for your style, commentary, and for telling me to spend lots more time on the website in the password area.
Feel free to use me as a reference. It's the first service that has been honest with me" AWL, Chicago
Monday, July 12, 2010
Friday, July 9, 2010
Cynical For a Day
We did not play the market as we had to breathe, and let these oversold conditions breathe. The 3 p.m. hour being the most key and important I go online always at 2.30 or so to see where the Dow has been playing.
Yesterday everybody was tired, no one was ready to "go more" and the market held on. But the 3 pm. boys took us up, and we're now hitting good resistance lines. It's exciting, as we have bias that could actually conclude now and a stronger upside.
So we'll be cynical for a day. Watch futures carefully. Any movements to the put, and if risk oriented, buy our new signal for a day trade, but high risk.
We've had a great week. Another day up shows we are truly on the next cycle.
It is important to note that Gold is falling, for the short term, while the market slightly advances. Gold is also oversold, and a surprising downside could occur, one more test of support lines, as low as 9875. We add this to our Dow Projections. There is enough unsteadiness that a whipsaw surge returning FEAR could occur. We offer a day trade to the put today, not for the faint hearted.
Private employees toil 13.5 months to earn what federal works do in 12.
Because so many people lose money trading options people believe it is option trading that is wrong, not them. Options are just numbers, and it's very possible to make great profits on them.
It's this simple.
How to Trade:
1. Set stop loss and profit goals in advance.
2. Follow the rules you set
3. Follow the $'s you were willing to invest, and do not invest more or less
4. If you start losing too much, stop trading and paper trade again
5. "Fall in love" with the bid/ask of a specific STRIKE point while it is within trading range, and only follow that position. Make your money on an option you KNOW
6. Keep your emotions out of trading.
7. Hide 10% to 15% of any profits immediately and put in a separate account. Lock profits away from any "gambler" in your character.
Yesterday everybody was tired, no one was ready to "go more" and the market held on. But the 3 pm. boys took us up, and we're now hitting good resistance lines. It's exciting, as we have bias that could actually conclude now and a stronger upside.
So we'll be cynical for a day. Watch futures carefully. Any movements to the put, and if risk oriented, buy our new signal for a day trade, but high risk.
We've had a great week. Another day up shows we are truly on the next cycle.
It is important to note that Gold is falling, for the short term, while the market slightly advances. Gold is also oversold, and a surprising downside could occur, one more test of support lines, as low as 9875. We add this to our Dow Projections. There is enough unsteadiness that a whipsaw surge returning FEAR could occur. We offer a day trade to the put today, not for the faint hearted.
Private employees toil 13.5 months to earn what federal works do in 12.
Because so many people lose money trading options people believe it is option trading that is wrong, not them. Options are just numbers, and it's very possible to make great profits on them.
It's this simple.
How to Trade:
1. Set stop loss and profit goals in advance.
2. Follow the rules you set
3. Follow the $'s you were willing to invest, and do not invest more or less
4. If you start losing too much, stop trading and paper trade again
5. "Fall in love" with the bid/ask of a specific STRIKE point while it is within trading range, and only follow that position. Make your money on an option you KNOW
6. Keep your emotions out of trading.
7. Hide 10% to 15% of any profits immediately and put in a separate account. Lock profits away from any "gambler" in your character.
Thursday, July 8, 2010
The World Was Good though Gold Rose?? Maybe Not
The world is now good, everything is better, and Lindsey Lohan is going to jail for 90 days......and the market soared over 274 points to hit a theoretical Dow top of 10060.
Most importantly, the market held above 10,000, a hard psychological number. Let's hope it holds upside in today's trading.
No new trades yesterday were possible without paying above prior day close. But let's look closely again at our 95% potential profits on 7/6 and the following on the call yesterday
OEX JUL 17 2010 460.00 CALL
Last [Tick] 23.45[+]
This is how high the signal reached. We bought this option as low as $10.00 yesterday, and gave our top sells at 17.90. We're sure this morning no one believed us, but the triggers have been showing. Most of you bought this call Tuesday and were ready to make second buys. There was no need and your profits could have been as high as 74% with ease, and returns to 134% reported by many subscribers.
We have simply kicked ass and taken names the past two days. We open the day with no new position, and will not have one. We have had two days of exceptional profits, and it's time to rest, and to let the market decide what it just did.
Gold rose. An indicator that makes no sense.
Let's just "sit on our hands" and watch this day unfold. If it "seems clear" we'll issue an intraday alert, but only if we see safe patterns.
Most importantly, the market held above 10,000, a hard psychological number. Let's hope it holds upside in today's trading.
No new trades yesterday were possible without paying above prior day close. But let's look closely again at our 95% potential profits on 7/6 and the following on the call yesterday
OEX JUL 17 2010 460.00 CALL
Last [Tick] 23.45[+]
This is how high the signal reached. We bought this option as low as $10.00 yesterday, and gave our top sells at 17.90. We're sure this morning no one believed us, but the triggers have been showing. Most of you bought this call Tuesday and were ready to make second buys. There was no need and your profits could have been as high as 74% with ease, and returns to 134% reported by many subscribers.
We have simply kicked ass and taken names the past two days. We open the day with no new position, and will not have one. We have had two days of exceptional profits, and it's time to rest, and to let the market decide what it just did.
Gold rose. An indicator that makes no sense.
Let's just "sit on our hands" and watch this day unfold. If it "seems clear" we'll issue an intraday alert, but only if we see safe patterns.
Wednesday, July 7, 2010
Gold is Beginning to Sell Off
Of course, everyone was happy, we all had hot dogs, made miniature bombs bursting in air, and allowed the stock market to burst to new highs of theoretical 9898 by 10.30 a.m.
Initial buys to our new recommendation to the call were not available. During that time, however, our put hit lows of 4.00, moving to highs of 7.80 during the trading day, for a signal we consider sold.
So, on a massively UP day, we first made money on PUTS, as much as 95%! And we took entry easily below best buy on the call, and still hold it as a trade.
Gold is beginning to sell off. This is a healthy and good sign for the short term.
It is not obvious that nations cannot be run on debt, as they have been for almost 40 years. Economists may argue the methodology of accounting, of debt, of how obligations are packaged, but in the end the "debt" has always been there, in the form of mortgages, mounting credit card debt, easy credit lines for corporations, forcing them to more debt, or to begin falsifying the books.
For ten years, in publication, Floyd has told us that all financial statements are false, or that at least the majority of the large corporations are. Enron was just the first to get "caught" but we can now see how many games were played, and these have been played since the early 1900's. Nothing has changed in the "core" or the basics, it is only the electronics, or the "way" the games are played that have changed.
None of this is new, and all of it has been done before.
Roubini Sees German, U.S Debt as Havens in Face of ‘Fragility’
July 4 (Bloomberg) -- Nouriel Roubini, the New York University economist credited with predicting the financial crisis, said that government bonds of countries such as Germany, Canada and the U.S. will represent a haven from increasingly volatile markets in coming months.
“It is going to be a period of economic and financial fragility,” Roubini said in an interview in Aix en Provence, France. “The short-term and long-term debt of countries not yet subject to sovereign debt concern will be havens,” he said.
The global economy will slow in the second half as deficit- reduction measures, notably in Europe, sap demand, Roubini said. U.S. growth will ease to about 1.5 percent by the end of 2010, about half its potential, while the euro area’s expansion may stall, he said. As a whole, the world should avoid a double-dip recession, he said.
“The next few weeks and months will be a time of volatility as the market surprises on the downside,” he said. “It’s a pretty ugly picture. The macro news from the U.S., Europe, Japan and even China is disappointing. Credit spreads will widen.”
Roubini spoke at a meeting of France’s Circle of Economists.
To Floyd, Roubini is one of the few economists who understands the situation we have created and that it is not so simple as "lower the deficit."
Initial buys to our new recommendation to the call were not available. During that time, however, our put hit lows of 4.00, moving to highs of 7.80 during the trading day, for a signal we consider sold.
So, on a massively UP day, we first made money on PUTS, as much as 95%! And we took entry easily below best buy on the call, and still hold it as a trade.
Gold is beginning to sell off. This is a healthy and good sign for the short term.
It is not obvious that nations cannot be run on debt, as they have been for almost 40 years. Economists may argue the methodology of accounting, of debt, of how obligations are packaged, but in the end the "debt" has always been there, in the form of mortgages, mounting credit card debt, easy credit lines for corporations, forcing them to more debt, or to begin falsifying the books.
For ten years, in publication, Floyd has told us that all financial statements are false, or that at least the majority of the large corporations are. Enron was just the first to get "caught" but we can now see how many games were played, and these have been played since the early 1900's. Nothing has changed in the "core" or the basics, it is only the electronics, or the "way" the games are played that have changed.
None of this is new, and all of it has been done before.
Roubini Sees German, U.S Debt as Havens in Face of ‘Fragility’
July 4 (Bloomberg) -- Nouriel Roubini, the New York University economist credited with predicting the financial crisis, said that government bonds of countries such as Germany, Canada and the U.S. will represent a haven from increasingly volatile markets in coming months.
“It is going to be a period of economic and financial fragility,” Roubini said in an interview in Aix en Provence, France. “The short-term and long-term debt of countries not yet subject to sovereign debt concern will be havens,” he said.
The global economy will slow in the second half as deficit- reduction measures, notably in Europe, sap demand, Roubini said. U.S. growth will ease to about 1.5 percent by the end of 2010, about half its potential, while the euro area’s expansion may stall, he said. As a whole, the world should avoid a double-dip recession, he said.
“The next few weeks and months will be a time of volatility as the market surprises on the downside,” he said. “It’s a pretty ugly picture. The macro news from the U.S., Europe, Japan and even China is disappointing. Credit spreads will widen.”
Roubini spoke at a meeting of France’s Circle of Economists.
To Floyd, Roubini is one of the few economists who understands the situation we have created and that it is not so simple as "lower the deficit."
Tuesday, July 6, 2010
Welcome Back
Welcome back. The world has not ended. There is still love, nature, animals, clouds and many many people. Over the Holiday Weekend we only screwed up as we normally do, but did not create any new World Wars or environmental disasters.
The Dow Jones Industrial fell for seven straight days, sliding well under 10,000. It ended the week off 457 points, or 4.5%, to a close of 9686.
We are adjusting our Dow projections for the first time in 21 market days, with 76% of our Dow support/resistance lines actually hit during this highly volatile time.
It's also a week of limited economic data, as you can see below, so the markets will likely focus on weekly numbers, especially the all important (but really completely irrelevant) weekly jobless claim report.
Instructions detailed within our Dow Projections.
The Dow Jones Industrial fell for seven straight days, sliding well under 10,000. It ended the week off 457 points, or 4.5%, to a close of 9686.
We are adjusting our Dow projections for the first time in 21 market days, with 76% of our Dow support/resistance lines actually hit during this highly volatile time.
It's also a week of limited economic data, as you can see below, so the markets will likely focus on weekly numbers, especially the all important (but really completely irrelevant) weekly jobless claim report.
Instructions detailed within our Dow Projections.
Friday, July 2, 2010
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.
- Hide quoted text -
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.
___________
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.
__________________________
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.
___
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
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.
- Hide quoted text -
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.
___________
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.
__________________________
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.
___
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
Thursday, July 1, 2010
High Tech High Speed Poker Game
Yesterday we saw a market "try to flat line," showing very flat and undefined futures, and hitting lows of 9790 before 11 a.m., again very very close to the 9776 support and resistance line that held the market during the first "great recession". We've hit this number several times during this sell off, and have always closed above it. The rest of the day we saw classic flatlining, through 1.30 p.m., then 2.30 p.m.
Puts were actually profitable yesterday to up to $1.00 per contract, and futures did not even reflect a strong downside. That is, until the 3 pm. hour when the market moved right to the 9774 resistance mark and where the puts we bought were profitable from a low of 4.35 to 6.90, for profits of up to 58%!!!
Right now a high-tech, high-speed poker game is playing out in the stock market, and billions of dollars are at stake. As the WSJ states "the adversaries are high frequency traders and big investors such as mutual funds. HIgh speed firms are using computers to detect large "buy" and "sell" orders to adjust their trades, and traditional investors are scrambling to trade "undetected."
So what is happening? It's become an escalating arms race,with technology receiving the power to trade faster and more efficiently. We saw it in the algorithms and rising use of computers, and a "traders" mistake that led the May 6th "flash crash."
_______________________________
> A timely excerpt from our Monday Blue Chip Option commentary:
> Turmoil has marked events more this year than ever before.
>
> Toyota was a crisis. Worldwide panic. News everywhere.
>
> Toyota still has a good quarter, learns their lesson on quality control, and soon thereafter every major car company except Honda is hit with massive recalls also, but the “hit” is not there.
>
> And from Toyota there was soon thereafter “the flash crash,” a 20 minute trading period in which companies that are well known actually hit zero, and more 25% trailing stop losses were executed by funds, individuals, and all of finance on the massive drop.
>
> Okay, so some say it was a blip, and I’ve also read an intriguing study on how this 1000 point drop that shattered Wall Street could have occurred on a full Fibonnaci retracement….and on and on.
>
> I don’t really care.
>
> What I care about is that it does not happen again, or that if this is the “new way,” let’s get ready, and buy gold buillion and run.
>
> What concerns me is that no one talks about it and you can find little internet feed explaining the true precautions being set up, or if they are; it is as if the exchanges see it just as a “blip,” “easily corrected with a simple remedy: the adoption of cross-market trading halts for individual stocks so that that buyers can catch up with the sellers and vice versa.” (Jim McTague, Barrons).
>
> It goes back to the story of the circuit breakers, what we had been told in the past was “failsafe” for moves like this. Proctor and Gamble gossip cost us billions? Something is wrong.
>
> Even VIX feels different. Buying fear is a good trade, just as selling confidence is usually a good sale. Sear, in Striking Point, says, “People are buying puts because fear is high , Vix at a lofty 35…..and remember the market’s mainstay strategy remains selling stocks to increase investment returns, or selling puts to lower the cost of buying stocks. 14 million contracts trade on an average day."
>
> Much of that option volume is institutional: buying hedges,adjusting hedges, puts against positions taken. Options are an art, science, and card game.
>
>
>
> The rules are changing in the card game.
Puts were actually profitable yesterday to up to $1.00 per contract, and futures did not even reflect a strong downside. That is, until the 3 pm. hour when the market moved right to the 9774 resistance mark and where the puts we bought were profitable from a low of 4.35 to 6.90, for profits of up to 58%!!!
Right now a high-tech, high-speed poker game is playing out in the stock market, and billions of dollars are at stake. As the WSJ states "the adversaries are high frequency traders and big investors such as mutual funds. HIgh speed firms are using computers to detect large "buy" and "sell" orders to adjust their trades, and traditional investors are scrambling to trade "undetected."
So what is happening? It's become an escalating arms race,with technology receiving the power to trade faster and more efficiently. We saw it in the algorithms and rising use of computers, and a "traders" mistake that led the May 6th "flash crash."
_______________________________
> A timely excerpt from our Monday Blue Chip Option commentary:
> Turmoil has marked events more this year than ever before.
>
> Toyota was a crisis. Worldwide panic. News everywhere.
>
> Toyota still has a good quarter, learns their lesson on quality control, and soon thereafter every major car company except Honda is hit with massive recalls also, but the “hit” is not there.
>
> And from Toyota there was soon thereafter “the flash crash,” a 20 minute trading period in which companies that are well known actually hit zero, and more 25% trailing stop losses were executed by funds, individuals, and all of finance on the massive drop.
>
> Okay, so some say it was a blip, and I’ve also read an intriguing study on how this 1000 point drop that shattered Wall Street could have occurred on a full Fibonnaci retracement….and on and on.
>
> I don’t really care.
>
> What I care about is that it does not happen again, or that if this is the “new way,” let’s get ready, and buy gold buillion and run.
>
> What concerns me is that no one talks about it and you can find little internet feed explaining the true precautions being set up, or if they are; it is as if the exchanges see it just as a “blip,” “easily corrected with a simple remedy: the adoption of cross-market trading halts for individual stocks so that that buyers can catch up with the sellers and vice versa.” (Jim McTague, Barrons).
>
> It goes back to the story of the circuit breakers, what we had been told in the past was “failsafe” for moves like this. Proctor and Gamble gossip cost us billions? Something is wrong.
>
> Even VIX feels different. Buying fear is a good trade, just as selling confidence is usually a good sale. Sear, in Striking Point, says, “People are buying puts because fear is high , Vix at a lofty 35…..and remember the market’s mainstay strategy remains selling stocks to increase investment returns, or selling puts to lower the cost of buying stocks. 14 million contracts trade on an average day."
>
> Much of that option volume is institutional: buying hedges,adjusting hedges, puts against positions taken. Options are an art, science, and card game.
>
>
>
> The rules are changing in the card game.
Subscribe to:
Comments (Atom)