“Exercising the right of occasional suppression and slight modification, it is truly absurd to see how plastic a limited number of observations become, in the hands of men with preconceived ideas.”
Last week was one of those weeks in the markets that I’ve come to dread.
Weird, I know, because it was a super-green week.
Well, it’s all because of what I’ve termed the “high-five high.”
See, early in my trading career -- when I was still suffering the slings & arrows of outrageous misfortune ... that is, inferior trading strategies -- I found myself making great money on big green weeks.
It wasn’t just me, either.
I’d talk to my dad who had some stories of guys asking him about how awesome their 401(k) was doing.
Within a week the markets turned over and the bears took some control.
Thus, right after we had high-fived ourselves because of our awesome trades, the markets peaked (for a while).
It instilled this fear of the big green market movements.
Which is all moot now because I’ve got a superior trading system that largely ignores what the market throws at it because it can collect premium in up, down, or sideways markets. Beautiful.
More about that in the coming weeks...
Today’s Macro Headlines (Source: Yahoo Finance)
Why it matters …
The almanac shows a bearish week (as indicated in the premium newsletter on Saturday). This is somewhat predictable as the Quad-witching day on Friday saw many, many options expire. The big money now waits for a bit of a breather while they decide where to invest their capital. It might take a couple of days.
Red Mondays are great for my system. Better entries, better premium for less capital.
Index Snapshot
See the Legend in the footer below
Comments: We have a mixed opening which is better than I expected. Should be some pretty good bargains. Stay conservative on your entries today. You might keep some powder dry as tomorrow might be more of the same, with even better entries.
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