Sunday, November 28, 2010

Tape Banging

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This type of violent tape banging is hard on traders unless you are following T-Rex in it's footsteps, and successfully not getting crushed on the sharp turns. 

This capture from Breakpoint Trades in their Sunday newsletter.

Shows an intense tape banging on "the biggies" SPX and INDU, not as much of a bang on Nas and Russell

I think most traders realize that if you are going to trade, you need to work on Sunday.   If there is a time to wrap your mind around the market, it is Sunday, outside the heat of action.

Now many people, like me, don't want to spend their whole Sunday creating and analyzing charts,    So I pay BPT around $1.33 per day to do all that basic work for me.    Let's see....if my time is worth say $85 per hour, and $1.33 saves me 30 minutes to several hours per that a good investment, heck yes.

One of the items you ought to have on your radar is a summary of indicators.   This could take hours to maintain, or you can simply open the weekend newsletter and review.   This tells me it's fine to hold January puts, although put a stink ask price on them, since the long term indicators still show higher highs to come.

Of course a wild card like a real war in the Korea's could have a black swan effect regardless of the long term indicators.  Technically the US is in an armistice with North Korea, that means that technically we are still at war with North Korea, but that we have agreed to stop fighting.    My take on this is that there is no "vote" needed to resume war, simply a decision of the Talker in Chief. drop the name Dabama.

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