Ugly Day, Stay Away

Just wanted to get a quick video out on the major indexes and cover some market posture. This is a fantastic time to Sit on Hands (SOH). We should expect market volatility of this 3 figure nature in the DJIA and several point percentage moves in most financial instruments for weeks to come.

If you are not a professional I would insist that you use this time to raise cash and sit on the sidelines. Don't misunderstand me, this is a great time to be a intra-day trader, but even those individuals can get their chops licked in this environment.

After the "Flash Crash", May 6th action, we saw, it further confirmed our thoughts to get hedged and use great caution. That day I got stopped out of most of my long positions and posted a couple of videos with ways to benefit from a down market. You can find those thoughts and videos in the archives. They were posted on May 10th and May 12th. This video link is a review of those positions and just forward looking thoughts.

Please be cautious in this environment. I anticipate we get a snap back rally but much over head supply should mute the bulls. Take this time to possibly sell longs into strength and further accumulate a CASH position.

http://www.screencast.com/t/MTlhNmRlYW

Good Time to be a Hunter

We might see some further weakness. Do not lose focus or throw all your cards in. These times are great to sit on hands and look for great setups on stocks that we have been wanting to get into for a long time and the market just did not let us. Remember, one must be vigilant and trade what the market gives us, also remember that the market tends to try to prove as many people wrong as possible. With that being said, as everyone is starting to talk about getting short, don't be surprised if the market does not surprise once again. This is a good time to tighten up stops and look for low risk entries. Just remember the Volatility is a bit inflated which means we should see large swings. If you can not handle the volatility, do one of two things, trade smaller lots or sit on the sidelines and wait for the volatility to subside.

Observations on the Major Indexes

Here is a link to a quick video on the Major Market Indexes
http://www.screencast.com/t/OGMzNWZiZ

ES Futures Trade Update

I got stopped out of my /ES Futures trade this morning as the markets continued to sell off. -4 points.

ES Futures Trade

Getting long the /ES futures here @ 1148 @ 5:07 est. With the $TRIN closing over 2. I will look for a morning push up I have stops set @ 1144 for now risking 4 points.

AUY Option, Turning it into a Guaranteed Winner

Here is a link to turning our AUY jun 11 calls into a vertical spread, opening up some different options for us and making this trade a win win scenario. No matter what it will always be a winner.

Here is the link to the video

http://www.screencast.com/t/YjdkOTc1YWYt

A Couple Of Position Updates

Hey Tidetraders who followed me on RRI and all, I am shaving a piece off the RRI my 4 calls we entered Tuesday @ .15 and .20. I have shaved some off @ .45 here and looking for further upside in this. Bringing stops on the rest to .30.

Options Chain provided by TOS




HOC

I noticed some nice activity on the Jun 30 call strike, here is a Chart and an Options Chain provided by TOS



I added HOC jun 30 calls @ .85



TPX

We have traded this name several times before and it is back in that channel on the daily. I have also noticed some interesting Call activity in the name.

I added a small position of the jun 40 calls @ .70 will look to add if it pulls back to the bottom of the channel

Here is a Chart showing the channel and Option Chain provided provided by TOS






Remember, you can follow my trades live on Twitter, Stocktwits, and Tidetraders.com