Tag archive for ‘option expiration’
Option Weak
Today’s pull back had the feel of a gentle, slow motion carnival ride.
The real thing like the thunderbolt leaves me nauseous; this kind of non-action just leaves traders frustrated and off balance.
Friday’s resistance held overnight, then price tested the subsequent supports,never mustering the strength to bounce very far. The first hour breakout was a weak [...]
The Battlefield of our Emotions
We called the primary battlefield for the morning trade as the 42/32 range. That held up as the premise reasonably well until the late day breakout.
I was a guest in another traders room today. As usual I was pretty quiet, just observing the emotions of the smaller traders. It is a good way to get [...]
Emini of OZ
Yesterday’s late day 86 resistance held all day long for today’s continuation trade.
The retracement continues, searching for support.
The 60 minute chart got tested, now we will see Monday where the market wants to dig it’s heels in and try to do battle. Still lower in my opinion before the real test begins.
The morning chop frustrated [...]
Emini to the Maxi
The early morning test of the weekly low held, and that was all she wrote for the short side other than intra-day range trading and scalps.
Our system sell was 70 resistance, and we stood aside late day after the first attempt as it became obvious the longs were trying to jam the shorts.
As a trader, [...]
Narrow Range Day
Today was a typical narrow option expiration range day.
Running about madly all over the place and going nowhere.
Shorts: Going to take out that new low!
Longs : Got ‘em trapped, gonna breakout and hit 80 to 85!
Shorts at 74 area double top: Not so fast!
Longs and Shorts mid 60’s: Geez, death by 1000 cuts!
Shorts: Got ‘em [...]
The 10 cent trade
A new Bear Market low was made again today.
Sounds like a broken record I know, but that ’s the reality of the price action.
News moves the market these days.
Reminds me of my college days, when we would greet any kind of news with raising a can of beer in a toast.
When President-Elect Obama announced his appointment [...]
Option Shake and Bake
The volatility continues. Nimble fingers are the order of the day, along with a game plan, reasonable stops and nerves of steel.
And let’s not forget capital.
Remember the old joke: “How do you create a small fortune trading?”
A: Start with a large one.
We always need to put today’s activity into context with the previous day(s). Traps [...]
Houston, we have a problem
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The pullback that started after the open Friday continued today. Fibo traders looking for the 50% target found smooth sailing today hitting every bounce.
The week after option expiration is a great time for the boys to revert to the mean as it does significantly less damage at the beginning of the new month cycle.
So they [...]
Eisenheim Day
Eisenheim : Everything you have seen here has been an illusion.
Nothing is what it seems.
Monday’s misdirection play was a thing of beauty; even the great Eisenheim would have been applauding.
Traders were so busy looking through their rear view mirrors at the premarket high that they forgot to look at the cliff they were driving off.
After Friday’s [...]
Confuse us says: The long and short of option expiration
Option expiration is a study in volatility.
If you accept the premise that wall street insiders have an edge, then you are ahead of the game. The trick is to synchronize our mind with theirs, and stay one step ahead of the pack rather than always being a step behind.
If you also accept the premise that [...]
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