What The ….
UPDATE 10:00am EDT: Boy, that was such a nice open – followed by an instant Goldman sponsored stop sweep to the upside. It’s fairly clear that this shit is Nasdaq driven program trading as the ES is trailing the NQ’s moves. I’m also sick of that IBM butterfly, which every morning is profitable and the damn MMs (knowing what’s ahead) don’t let me out. Dirty games galore – what else is new….
So here are a few lines in the sand – the only rule for a 2nd wave is that it should not exceed the high of the prior peak which is 875.63. Now that doesn’t mean I’m going to hold my puts all the way up there – let’s see what happens once we touch the 61.8% fib line at 856. If we push past that we might go all the way.
Can someone remind me why I keep trading Gold? LOL Seriously now – we’re converging to a point where the whipsaw will most likely stop and Gold will have to pick a direction. That diagonal resistance line has been observed several times thus far on the trip down. Yes, you can run but you can’t hide….
Again, let’s remember that the main trend remains to the upside, so nasty surprises (like the one we just got) are likely to point towards that direction. Knowing that I kept my position very small yesterday but it still sucks seeing nice overnight profits melt away like that. But that’s life as a trader – it’s never boring – especially in this market – hehe.
UPDATE 10:30am EDT: Your channel du jour:
UPDATE 10:43am EDT: I just grabbed some SPY puts here – don’t follow my example as I’m crazy. There is a very good chance we melt higher on vapor here but after such a spike up buying puts here is therapeutical – as my emotions were screaming out not to do it. I often intentionally fade my emotions, which in the past have been a good contrarian indicator.