Quick Cleaner and Strategy Thoughts…

Berk here:

Quick little view of the working (not anymore) trendlines in $INDU.  The reason I am showing $INDU is because if it does not fall of the plate shortly, it will likely push up on last time.  The reason I say this is due to the massive amount of overlap that allows the only working bearish count to be I-II, i-ii.  That said, keep an eye on the $INDU, if it fails to break lower, we may likely see one last high.

Enough about that though.  It’s all mental masturbation right now with the Fed meeting coming, and a lack of clear resolution.  We will know shortly which of us is correct.  In the meantime, notice the lower highs and lower lows in the markets… 😛

Next, I am sure some of you have noticed my little bags of tricks I let leak occasionally.  Right now I have reverted back to my TREND TRADING system.  Why?  Because we are about to be trending (nice fast current) and I am going to position myself in equities that are preceding the trend.  I am looking to purchase far OTM options mostly in Jan and Apr to capitalize on both price move and volatility, and also minimize theta burn.  That said, I am not looking to wiggle in and out of these stocks, you will see more on that when MA, FSLR, and BIDU, all convincingly drop lower.  I am not using stops either, just a pyramiding entry system based on long term BBs.    I cover more on the system I am trading later, but for now, here is a sneak peak of one that I got on board of yesterday….

I purchased a single unit of GNK Jan ’10 15 puts for .70 and am up 20% right now.  Should we get a decent move lower, I will be adding to my position (TT vs. Swing trade).  This set up still looks pretty good…

That’s it for now…  I will be back with an update in a little bit.

The two working counts on NDX…

NDX working counts...