I thought the S&P looked toppy in early July, and then it actually traded down alittle for a 6 week period. If you sold S&P 1005 calls, and 1025 calls in early July, and had the guts to wait a month, you would have made alot of money. That's the power of knowing the *S&P looks toppy". You know it won't go higher than a certain number, and then you sell the premium. I cleaned up on it.
Wow! Thanks for the link. Robert Miner is saying something very similar to this right now. He has done a fairly decent job over the last 5 years. He's no Romeo , but still... This is going to be fun. Well except that I have had my arse handed to me this month so far, that hasn't been fun. But that is the life of a trend trader. Could we trend a little longer than the 10 moment chart please? I have kids to feed!!!
That is a great idea. If I knew how to do anything but get in when price crosses a moving line I would have done the same. I love that idea.
************************************************* Romeo, I don't mean to nitpick here and I've acknowledged you made a good call and certainly changing one's mind is a sign of flexible thinking which is good. I'm just wondering how you went from thinking we wouldn't make highs for many months..... and was quite adamant about it.....to thinking new highs soon. I'd like to know how your thinking. I hope your right cause my trending method aint doin squat now. Continued good trading to you.
thnx... we'll see! We might just churn for a couple more weeks I go from bearish to bullish on the indexes almost weekly lately.... :eek: HOWEVER, anyone who thinks this is an easy market to handicap... at this juncture.... ain't living in reality !! Thus I have raised cash to almost 80% awaiting the next opportunity. Right now I see no real advantage to position trading the indexes (although selling otm SPX options "could" work again this cycle). I'll hold the small strangle seeing if we have a sizeable break, up or down... or, maybe leg into double credit spreads if I can catch the swings correctly. Peanuts likely. Still looking for a late FALL breakout... higher! ICe
I'm with Iceman here. I'm mostly cash but long an OEX strangle. I think we rally a little then drop. Then repeat that until the shorts capitulate. Then the real drop will happen. It's "that" time of year. October is on the horizon.