This is probably old hat to many, but the notion of selling some long assets and replacing them with calls seems to make sense at this juncture. That way if we get another upside pop you get to play, but if not you have less toys in the sandbox.
I thought we were overbought too, but now I think we are settling into a tight range (consolidation) that is going to last for quite awhile (too damn long!!).
From my vantage trading its emini today, there was a very definite and largely unnoticed break late in the day. The index itself was the leading loser -1.74%. Do not believe it has formed a daily bar like this in the last month but could well be wrong on that. Geo.
I believe it was Keynes. And, the quote is, "markets can remain irrational longer than you can remain solvent."
Wait for that technical entry signal -- then plan on the most painful outcome for those who entered the trade Seriously, that trendline on the SP is just too smooth -- IMO either it gaps down so hard that no one is able to sell much into it, or we breakdown through it, then stop everyone out with subsequent new highs. Shrug who knows . . .
Thanks, hardrock. I'm always misquoting somebody. I get the idea right, but I forget the exact phrase. Damn, I hate getting old (not a misquote this time - just a sentiment).
I had been getting short all of last week expecting a day like this. Now I do feel vindicated a little bit because a couple of people bashed me about getting short in such a strong market. Such is life, when you play the short side. But when the market breaks like it has today ... it makes it all worthwhile.
The game is on. Will it be a mere pullback or the start of a change of trend?... I love how the reversal day comes at a precise gann number in time. Maverick.