ROLLER COASTER

The market sold off hard on Friday creating a pretty good three day roller coaster. We didn't get the confirmation that I pointed out last Thursday. There is a real battle going on right now between the buyers and sellers...and with Friday's move the sellers are winning again. These types of moves can be frustrating, but there is really no way to predict them in the short term. If there is someone who accurately predicted the last three market days, they are lucky...not brilliant. I will probably look to buy puts into any rallies that may occur in the next few days...unless we get another 200 point rally on Monday. If that were to happen, I might just sit out for a few days until the market decides which way it wants to go. Friday's move burned a lot of professionals who bought back in at a panic after Thursday's rally. They won't be as anxious to do that again...which means that the market could really start to sell off hard if it opens lower on Monday. I usually don't like to buy put options during the drops because the options tend to be more inflated. I like to wait for little rallies to take place. I also like to just trade the market using the SPY, DIA, or even the QQQQ. Unless the market trend is down, I usually don't spend much time looking to buy put options on individual stocks.