Back In Business

UPDATE 12:37pm EST: Well, my TOS account problem has been resolved – still not sure what caused it. But I’m back in business, that’s all I care about. My sincere appreciation goes out to all Zero subscribers – you guys were great throughout the entire outage. I didn’t receive one single hostile email – on the contrary – everyone was very supportive. I am very humbled, to say the least – seems like I’ve got a loyal and very supportive subscriber base, which is a big reward in itself.

Of course I myself would have not been so patient and would have seized the opportunity to unleash a hateful email shit storm about the lousy service. Looks like you rats missed out on a great opportunity to complain. Mwuuuhaahaahaaaaa!!!

Alright, back to business: It seems we finally got the launch codes for Minor 4 this morning and are now bouncing against that diagonal resistance line I mentioned on Sunday. I expect us to hem and haw around here for a little while but this should not be the end of it. Although a 23.6% retracement is acceptable in EWT I expect us to continue our trajectory upward into the 750 region, more specifically I would want to see 746. At which point I intend to load up on puts one last time. Remember guys – this will be the last leg down for a while, so let’s do this one right.

UPDATE 12:58pm EST: Here is a possible scenario of how Minor 4 might play out:

We drop into {b} and retest this outer channel boundary and then proceed into {c} to complete Minor 4. Of course there is the possibility that this was it – but it is highly unlikely to see a one-day Minor wave. In this case I might have to relabel 3 of (5) as it might extend even further.

UPDATE 1:30pm EST: Gold and Silver dropped nicely this morning:

I concur with T.K. about taking profits here and waiting for an opportunity to load up on more puts if you are holding front month or short term options. If you look at my chart – we’ve got a major diagonal support line here plus we are touching a large degree 61.8% fib line. So I expect there to be a bounce soon – or at minimum we’ll see some sideways consolidation that’ll burn your theta.

Also, if you are sitting on puts consider that we’ll probably see the VIX dropping along with equity averages completing their Minor 4 consolidation. This will hurt your puts as they are losing vega – for instance my June SLV puts didn’t make any profit today despite a nice drop in the Silver futures. I decided to hang on to them, but again – if you are sitting on options that expire in a month or less I suggest taking profits and waiting for a bounce to load up again.

UPDATE 1:54pm EST: Remember the Goldman Sucks trade I suggested yesterday?

Many of you rats disagreed with me but this round goes to the evil grandmaster – mmwwuuhuuuhhaaaaaa!!

UPDATE 2:17pm EST: Okay, here’s an updated SPY vs. SPY channel:

I have highlighted possible support zones – looks like we are pushing into {c} now.

UPDATE 2:38pm EST: I just looked a the ISEE and it’s mildly bullish:

TRIN has been below 1.0 all morning – so buyers are present.

In other news – I have been trying to get a decent fill in FXY for two days now – about to tear my hair out. I still have not seen any good optionable Yen alternatives. Anyone???