Chinese Lessons for Travelers

You’ve heard it said, “One man’s demise is another man’s opportunity”, haven’t you?Well being one who lived and was trading the markets during the October 1987 Crash i.e., Black Friday and Monday, I’m here to tell you there is money to be made, big money. While the Wall street guru’s occupy your time trying to figure out what the hell to talk about, money has already decided what will happen and are repositioning themselves for the next advance, which by our work should ensue very, very soon. Long term technicals are screaming “OVERSOLD”, which is bullish for the intermediate term, if your skittish, then we’d play, and were playing “straddle” option positions all last week. These positions are ideal for the kind of volatility we’ve seen in the last week (swings of 1000 points), was a cr fiat currency ash back in 1987, today it’s a completely different ball game. WHAT TO DO NEXT? Our work is telling us that the market is seeking out a bottom at around 77 -7800 on the dow. We are not taking a firm long position until the market has attained that objective. As we ease into that number, we feel that the market volatility will begin to wane as the floor traders begin to “suck” out the premium from the options market. Hence, we are planning on placing spreads, e.g., bear spreads (out of the money and above some ver key levels in the Dow). A SPREAD – Why? 1. Whenever the market goes through this type of volatile period (up or down), it always pauses to refresh itself, readjust itself to reality and as it does, so goes the premium in the options as well as the volatility in all the indices.