A second bite at the cherry

Huge tug of war here in the 895-910 range. There has been massive selling, but it has not yet broken the rally - certainly testing it very hard though. Whoever wins out here should determine the move into the close and the tone of the next few days.

Because of the increased risk, I've sold out half of my longs and am going to wait for a break above 920 before buying back.
 
Once it broke below 885, I went short and thought I'd set trailing stops at 10% because of the wild swings, lol all of them got hit on the little rally and I lost 10% on each position, ugh...feel like I should have just not set stops or set them even looser.
 
Quote from Cutten:

Huge tug of war here in the 895-910 range. There has been massive selling, but it has not yet broken the rally - certainly testing it very hard though. Whoever wins out here should determine the move into the close and the tone of the next few days.

Because of the increased risk, I've sold out half of my longs and am going to wait for a break above 920 before buying back.
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Spooz looks to surge another 40 points
 
Quote from stock_trad3r:

Spooz looks to surge another 40 points
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with such strong belief you should be selling spy puts. easy money with VIX collapsing from 75
 
Quote from Cutten:

ES futures. IMO the moves are too whippy for options, and with VIX in the 70s the premium is very expensive.

We have some momentum here so long ES with trailing stops is best IMO.
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I would consider NOV calls on XLF below 14; C below 13; JPM below 34; BAC below 19; QQQQ below 27, and possibly INCT below 13.5

Nov option period is a longer one - Nov 1st is a Saturday, the first Friday is on 6th.
These options will be held for about one week only, trying to sell them back with VIX still above 40
 
"DOW SP500 Nasdaq 100 bottom october 2008 (second chance"

"11:14AM october 16: with NDX at 1194, we are at the BOTTOM. "

Source: the blog of the greatest market timer of all times (past and future).

riskfreetrading
 
Quote from shortie:

with such strong belief you should be selling spy puts. easy money with VIX collapsing from 75
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when vix increase to the moon delta of puts heads to zero because delta of corresponding calls goes to 1 (This is not a typo). If vix decreases, you have the other effect. Sell puts. I like them ITM.

more explanation in rft's blog.
 
Quote from stock_trad3r:

I'm going to repeat what I have been positng for the past few weeks which is that nothing has changed economically between now and June 2007 was at 14,000. Absolutely nothing. 90% of these inidicators are important because as long as unemployment remains stable (between 6-7) and wages and income, as well as consumption keep rising the recovery in the stock market WILL be 'v' shaped. Period. Stocks are already surging off the lows and this will continue to rise. There is no crisis and no recession, except one that is media generated.
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QFT


Now is a great time to cover. Better to cover now when the dow is below 12,000.

The economy is driven by consumption, rising income, and consumer debt. None of those are affected by the non crisis. Credit card spending for example not affected. All the BRIC countries are also not seeing a slowdown in consumption.

The next 12 months are going to be huge. Google will surge, too.
 
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