Do Not Cross
10:00am EDT: My apologies for not posting an update last night – my power went out [again – and twice] – for the 5th time this year. Oh, the joys of living in a bankrupt state and in particular in Los Angeles county…
So, I spent the early morning wrapping some ‘do not cross tape’ around my SPX charts – so far the tape is abiding by the law:
We could easily get a snap back to the upside and that soon – as a matter of fact, I would almost be disappointed if our resolve wouldn’t be tested just a bit more – after all it’s OPX week. The ‘do not cross line’ is around 912 on the SPX and 8,400 on the DJI – if we bust higher it would weaken the medium term bearish case immensely. If go that far I might actually add a few more positions – as you know, near major inflection points I do like to live dangereously.
Until we see our line breached let’s not stress about it. If you went short the market yesterday or today you should be aware that major whipsaws happen during OPX week and it’s more than easy to lose a big chunk of your premium. So, if you decide to play, you need to know what you’re dealing with. Don’t sit there nervously biting your fingernails and watching every up tick in horror. Relax, make yourself a cup of java or your favorite tea (mine is pomegranate) and kick back – just enjoy the freak show. As traders we need to learn to detach ourselves from our emotions – and it’s one of the toughest lessons to learn and the one which is most easily forgotten. Which is why I keep posting about it on a constant basis – as a matter of fact, it’s my way of reminding myself 😉
BTW – would a fly without wings be called a walk?
10:20am EDT: FYI – disqus is down again – it’s not on your or my end. In the meantime – enjoy this clip courtesy of 2sweeties:
11:39am EDT: Okay, disclosure time: Before I was grabbing breakfast I actually dumped the puts I got last night around SPX 899 for a whopping $20 profit – LOL – had a ‘inkling’ we would bust higher. I think we’ll be touching 907 or 909 fairly soon here – and I’ll try my luck there once more.
12:06pm EDT: I just rebought my Aug SPY puts for .14 less – nice 🙂 Obviously more upside is possible but this is not a bad spot to load up plus I like what I’m seeing on the Zero Lite right now.