Today, I moved 100% to cash which included liquidating all option contracts and mutual funds/401k.
The returns on the options were staggering to say the least.
I sold half the November contracts right after the open for a 100% gain. Then the Nasdaq broke through 1984 and promptly shot up to 2001. I then liquidated the remain calls as there was negative divergence on the 60 minute charts and the Nasdaq had recorded it's 5th day in a row with the price popping out the top of the bollinger bands.
On the remaining half of the Novembers, the gain was + 134%. The Decembers gained + 76%, the Januarys gained + 60% and the March contracts gained 41%.
About an hour after selling the options, they pulled the carpet out from under the markets and everything tanked. I felt like the cat that ate the canary. LOL!
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I'm not sure the move up is over yet, but I've got my fair share for this leg. Breaking through Nasdaq 1984 was extremely important, but I must say, that tank this afternoon was butt ugly. When they broke 1984, the volume was very light and I repeat, very light. The real heavy volume came in late in the day on that tankage. The Nasdaq did finish positive by 5 points and did earn a black volume bar, but the heaviest volume came in on the down side as evidenced by the red volume bar on the Dow. The SPX also earned a black volume bar due to the rise in the SPX by one half of one tenth of a point. IMO, the SPX can be considered to have a red bar.
---Dennis
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