Okay, I’m going to post one more chart on this topic and then I’ll shut up about it:
Last time we saw the market drop and then flatline like this was at the beginning of February. Then we got one more candle to the downside, followed by a slingshot rally. Again, I’m not saying this is how it’ll play out this time around, especially since I have not tracked this pattern on our Zero/Mole combo before. Maybe it’s nothing and we’ll proceed into the abyss as scheduled. But at least set some trailing stops at a generous distance if you’re heavily delta negative. Just set it 5 or 7 SPX points away – you can do that in TOS easily with a conditional order. This way, if we see a sudden spike back, you’ve got out without too much of a hit.
Remember, only the paranoid survive. I’m with Andy Grove on this one.
Found the youtube version of Santelli’s Tea Party – I can’t pimp this clip enough – LOL: