Lessons

1. If VIX is under 26, buy the dip. If VIX is over 26, sell the rip.

2. Always trade in the direction of the larger trend. Find the strongest trend in your time period.

3. Nothing as bearish as a failed breakout. Nothing as bullish as a failed break down.

4. Don't worry about the last dollar. Take your money and go to the beach!

5. No more than four positions at a time. Preferably 2-4. Scope out others. Pick the strongest.

6. Buy the strongest; sell (short) the weakest.

7. Nothing is guaranteed. Nothing.

Monday, February 1, 2010

2/2 - the upside may be over for now



We will make a lower low, by the end of this week. MACD on the 1.5 hour and 2 hour charts should make a higher low. PMs should make a higher low.

By the end of this week:

Gold down to 1080 again. Range for 2/2: $1090 - 1108.

SLV (YI) down to 16.3.

SPX should go down to 1040 or so. ES range for 2/2: 1075 to 1090.

I will take partial profits on SLV calls on 2/2. Have already sold Qs.
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