UPDATE 11:00pm EDT: I just noticed something interesting that should have been staring me in the face previously:
See how that diagonal and the 78.6% fib line meet around 865? I have an inkling we’ll head up there today, despite the fact that I just grabbed some index puts.
Here’s the channel again – see how the upper boundary intersects there as well?
I think this make for a great target for the Goldman Boys to cash the chips they so obviously accumulated overnight.
UPDATE 12:02pm EDT: Good ole’ T.K. (friend of the blog) just posted a great treat on trading psychology – as you know one of my favorite topics. I strongly recommend you head over there and read his insights – all of which you should memorize and then internalize. It’s a bit like martial arts – just because you learned a move technically doesn’t mean that you’ll be able to use it when the moment arrives. Yes, even you can become a stone cold trader who laughs his way to the bank – but it won’t be easy and it takes daily discipline and a complete comittment to excellence.
UPDATE 1:36pm EDT: Looks like today is going to be one of those horrible whipsaw days. I’m just going to sit back and focus on catching up with some of my chores as the MMS are playing ping pong with this thing. Unless we breach that diagonal above by a healthy margin I’m not selling my puts anyway, so there’s nothing much to do unless you are swing trading. Speaking of which, Zero traders caught a very nice divergence this morning which I pointed out 🙂