All three major indexes closed below their 10 day moving averages today...barely. Some late buying (some in the last two minutes of the market) made it interesting. I wouldn't say that today's close below the 10 day MA was strong confirmation. If we would have closed at the lows of the day, it would have been much better confirmation. If any of you traded the AXP trade, send me your success story and I will post it. Some other recommended patterns that made big moves down include GMCR, AKAM, and AAPL. If you missed those trades, try puts on NFLX, HPQ, or AMZN. The success of those puts might depend on how we trade tomorrow. The last time the SPY closed below its 10 day MA, the market rallied 200 points the next day. This time we do have all three indexes below the 10 day MA, but it still wouldn't surprise me if we had just one more move up. Tops and bottoms can take time to form, but the market has shown signs that it might want to go down. If that happens tomorrow, we'll be ready.
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Bought 8 options on the AXP Nov 43 puts, sold them in chunks (taking money off the table) at 47% & 85% gains, still have 2 left to ride.
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