Here is what I am thinking for tomorrow.

It appears on the chart (see my last post) that we have had a reverse double hammer show up on the chart which signals a top.

I will now be doing two things:
1. A longer term put/call on the direction of the market that I will hold for a few days unless there is a big movement where I just have to take the money. This move will be decided upon by the charts at times I see a top or a bottom.
2. Daily plays where I follow the trend. I will wait and see if there is a market gap fade in the morning and about 1.5 hrs into the trading day I will be able to ascertain the direction of the market, and purchase a very close to expiration put for maximum movement on the direction of that day in the market and then exit that position before the market closes that day.

Also interspersed with that, I will be doing some updates on some blue chips such as Google, Apple, and others. I will also have some other picks here and there, but I will mainly concentrate on ETF's, seeing I do pretty well with them.

So I already have a longer term put that I bought yesterday that expires in December. I hope that the market really did trigger a top signal with that reverse double hammer and we have a few down days expanding the value of my put. In the meantime, I will jump in with puts or calls at about 1045 am Chicago time and exit those soon to expire (some times even in a day or two) volatile put/calls the same day. I will never hold the same day options overnight, only the longer term ones that I pick based on technical analysis. The daily options I do will be based on if the futures were up or down 15 minutes before open as well as what the Asian markets did the night before. Plus I also wait for the gap fade on days I am not playing the gap fade.

I am sitting here in a northwestern suburb of Chicago at the kitchen table at 11:53 pm with the dishwasher running behind me with a kitchen table light shining above me, much like a card table light. Its been a long day, Ive done a lot of stuff and I think I am going to turn in.

Well tomorrow is another day in the market, lets see if we can't squeeze 10-20% out of it tomorrow.

Tradinginsider