Finger Of God

UPDATE 10:16am EST: We’ve got a new channel for today, which I call ‘Finger of God’:

One of the characteristics of the directed trading program I’m getting closer to introducing is that it always closes out before the bell. I have backtested this thing over several years and the difference in profits is distinct. I believe the past two days are a testament to the fact that holding overnight these days is tantamount to playing Russian Roulette with a inebriated Siberian. I think it was actually less risky in throughout the turbulent 2008 episodes – these days I think you could probably bank a fortune to just take opposite positions at the end of the day.

I find it intriguing that we first had to drop to 806 in order to push back to 825 and fill that gap. At this point we’re all turning into daytraders and I’m hating it. As I said – I’m going to hold my puts until 835ish – maybe 840 – indicated by the orange band. At this point I have no idea as to when we’ll consolidate. It seems there is no end to how high they can bullshit this tape despite overbought conditions. Best policy is to pick a spot where you feel comfortable and add to your positions. But beyond that orange region I would probably admit defeat and proceed with cutting and running. This is not about ego after all – traders need to know when they are on the wrong end of the tape. So far I am still in my comfort zone. Let’s see where they take it from here.