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Deja Vu

Deja Vu

by The MoleFebruary 19, 2009

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:

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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