Options Wonderland

[yayaa]

I am still holding my X puts here because of the possibility of a huge move down based on yesterdays Phi mate turn date. Today is a big day and the futures are smiling on me at this time. Here is an interesting read. The analysis of a dollar in the 60's is freightening,40's imo is catastrophic. Overseas market having a bad day as well. The trap door is ready for all who are just standing still and the back door will get crowded when everyone is running out to the hills.


One interesting tidbit to glean from Monday's action is the McClellan Oscillator had a very small move, which often means there is a huge price move coming over the next day or two. Unfortunately, this indicator does not reveal which direction the move is going to take, so we will have to study our other indicators for clues. Today was the ideal best mathematical fit for our phi mate turn date. That could mean a bottom is arriving, or did arrive Monday. Or, it could have occurred a few days early, at last Wednesday's closing high. We should know a lot more tomorrow. The Full Stochastics on the chart at the bottom of page 10 in Monday's newsletter for subscribers argue for the coming large move to be up, even if it is a corrective rally, wave {ii} up shown on the chart on the top of page 12. The NDX is arguing that we are headed south and hard.



The Dow Industrials fell 7.49 points Monday, closing at 12,258.90. NYSE volume was 106 percent of its 10 day average, with downside volume leading at 53 percent, with declining issues at 54 percent, with downside points at 54 percent in mixed trading. Gold closed higher at 981.5. It should hit $1,300 in 2008. Silver closed above 20.00 !!! At 20.07, on its way toward 25.00, and Oil closed higher at $102.45, on its way to $130 a barrel. The Dollar fell a hair, down 0.02 to 73.68, along its journey toward the sixties, then eventually the 40's. Bonds fell to 118^18. The recent decline is corrective in a bull trend. The PPT has to buy the long end to keep Bonds headed in the right direction, unless a stock market collapse continues. The VIX fell 0.26 to 26.28 Monday, as fear remains in the options market.