THE RALLY FAILED

Here is an unauthorized copy of a picture of me near the top of the "Ragnar" mountain from my race two weeks ago (I haven't purchased my pictures yet. If anyone from Flo-Foto is seeing this, I will buy them soon!) I was about 100 yards from being done and this was the flat part of the climb. The toughest part was behind me. I probably look beat up with the tape and foot brace, but it really wasn't that bad. Somebody remind me next time not to wear all black in 95 degree heat while running straight up a mountain! And yes...I'm doing it again next year! There's your proof that I'm not mentally stable (like you needed any proof).

Today was a great day to enter into new put option trades on the market. The early rally sucked out the option volatility that was created by Tuesday's drop. In other words, many of the put options were undervalued. We knew that the small market rally was not likely to hold for long. The end of day selling coupled with the significant increase in volume during the last hour of the market showed us that the selling could kick into high gear soon....yes, I'm saying that we haven't seen "high gear" yet. We could likely gap down at the open tomorrow. If you haven't gotten into your put option trades yet, you might need to wait. Don't chase the market if it gaps down. We will get plenty of opportunities to get in over the next few weeks. Don't force a bad entry into a trade. For those that were waiting for the market to dip below 1040 before they were planning on getting in, today was your day to enter. It was a perfect day to enter. There is significant news coming out throughout the world markets Thursday and Friday. This weekend is a holiday weekend. The markets will be closed Monday due to the 4th of July holiday. This could create some heavy selling prior to the weekend. Normally the days before the 4th of July are historically bullish. This might be a year when that trend isn't followed. If the markets do remain flat on Thursday and Friday, use that as an opportunity to build your bearish positions. We've had a lot of big moves down on Tuesdays lately. Maybe we see another one next week. At the time of the posting, the S&P futures are around 1020. If that holds through the night, we will see a decent gap down at the open tomorrow. Send me some success stories if you have had some good recent trades. I'm still waiting for my gift certificate for a Hawaiian vacation (my wife said she has to be included)...who is going to step up to the plate. We could do some early morning trades before hitting the surf. Make that near market close trades (the market closes at 10am in Hawaii...it opens at 3:30am I believe). I could also use a new Ipad or laptop. Okay now I feel like I'm making a Christmas wish list for Santa.