Market Sense and Sentiment

[bbgold]

ATM equals At The Market? I told you that I am not good at the abbreviations yet <GG>. Actually I have some DJX Feb Puts that I picked up at the HOD yesterday and the day before. The Puts from yesterday are only down on the ask slightly from where I picked them up but the ones from the day before are down around 30%. I was tempted to average down around 9900 today but did not want the extra risk. I am not very good at limiting my risk and covering a position as soon as it goes against me. I Really need to get better at that. If I had been on my toes and recognized the cup and handle the other day then I should have covered my Puts at the close on Wednesday, the first cup and handle formation, and picked up some Calls. Normally I would not be holding the position over the weekend but I do not like Mondays and feel that the market may agree. Nasdaq AHI is moving higher though so this new found Positive sentiment may carry over until Monday, maybe. The trading pattern that seems to be developing in the Dow though appears to be nothing more than a larger and larger cup and handle. Would you consider another lower high on Monday a Bearish Head and Shoulder pattern short term or do you think that we had that today? For a long term read would we then need to retest 10100 before moving back down? If I may ask, do you have a good rule for what is the best time span to look at for establishing a trading range? Lately I have been trying to just read the daily trading patterns, if I can <GG>.

Thank you for your continued insights Bird of Prey!

Sincerely, Bob :^)