Yes, I cannot always befriend the trend <GG>. I end up looking at the long term trend when I should be looking at the short term trend and looking at the short term trend when I should be looking at the long term trend. I believe that the resistance at 9900 will hold and the markets will continue the long term downtrend. I am always uncertain about which trend to follow. I am trying to learn how to use the short term, daily and weekly trend, to optimize the returns on the DJX Options. I do not always react to the daily changes though. That is what Bernard and I are trying to find out here. Can the Plan be applied to Daily trading, Weekly trading or Long term trading. The Optimum would be to apply it to Daily trading and lock in a position for a gain on a daily basis. So far if I had been following the Plan the trades would have indeed returned a daily gain. Being able to apply and follow the Rules on a Daily basis leads to a lot of second guessing on my part though.
Following the Plan then Puts would be added here and profits taken on the Calls as it would be percieved as the HOD, if not done earlier. The Speculation of whether or not the market will continue to move higher from here comes into debate though and clouds the judgement as to whether the trade would be correct. The psychology of the traders sentiment becomes the decisive factor rather than the actions of the market. That is where I have my problems with my trades. I Think about them a little too much, rather than just following the market action to make my decision.
9880 appears to be holding support here, 9870 the next level down, then 9860-40. A break above resistance at 9900 and 9950 to 10000 should become the resistance.
I have heard a lot of speculation that the Dow will Never see 10000 again. We Shall See!
Good Luck Bird of Prey! Good Luck to All! :^)
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