Recent content by Zig Zag

Running with the bulls. Next time I am looking at a VIX reading over 42 the day before options expiry, remind me to buy 1,000 or so $0.01 out of the money Calls. They paid out 174 to 1. Happy to have gotten away with some dollars in the recent slide. And now the bulls will reign. Z.Z.

Santa is not coming this Christmas. Tom Tom, my friend. This is a 1930s-style credit meltdown. There is nothing left to lend money into. Credit is contracting. All asset values are falling. This is deflation 1930s-style. Everything will lose value. Especially stocks. It is going to go on for...

There goes the Merchant Marine... Sold my Puts at Dow 11,030. They Doubled in value since Friday. Taking a side by standing aside during the Fed announcement. Expect to jump back in with Aug Index Puts on an upward volatility spike after the Fed announcement. Wave analysis at all degrees...

Fed Funds Rate to be cut? I am worried about a Fed Funds rate cut over the w.e. (I am bearish) 3 month T-Bill yield continues to drop... now 1.40 vs a funds rate of 2.00

Re: Dow weak.... I'm thinking... puts in the pullback to the top around 10:30 EST.

Rate Cut? The Fed Funds Rate follows the 3-Month T-Bill Nominal Yield. Fed Funds Rate: 2.00 3-Month T-Bill Yield on 080910: 1.65 Hmmm.... Z.Z.

Correction! Is this just a correction? Bullish % flat on the S&P 500 but down on the NYSE and NASDAQ and falling. All indicies rallying at the end of the day and up for the day (except AMEX). All indicators for market breadth - down. Shorts covering? A little blue chippie? Accelerators are...

Waves on the Beach Sometimes I look at the charts and I see great art (maybe I have been staring at the screens too long). The attached image of the DJIA reminds me of waves rolling in on the beach. Waves. Elliott Waves? And what was with that rally at the end of the day? Shorts unloading? I...

Point Attractors I day trade and swing trade options on Russell 2000 IShares. The thing to keep in mind about this index is that round numbers and half-round numbers (eg. 71.0 and 71.5) are very strong point attractors. They are both sticky and repulsive. The index will hang out at one level...

Furthermore... Picking tops and bottoms aside... Acceleration Oscillators are about to go Negative. One attachment.

Re: Intraday System rec for AndrewOpala I use prorealtime.com The history does not go back very far (only a few days at 5-min resolution) but its pretty cheap, has a lot of tools (you can code your own indicators), and its fast (Java based). Its not a trading system - just a data and graphics...

IMHO lower lows ahead I thought Monday's Fannie / Freddie rally lacked market breadth. The Nasdaq 100 actually fell on that day. Up volume was not that strong - for a DJIA 300 pt rally. I got caught with uncovered puts and decided to hang on and sold at the close today (what relief! - but maybe...

On the short side... I disagree - I hope without being disagreeable. There is much technical weakness in this Fannie / Freddie surge. It looks very much like a blue chip rally to me - and that further lows are forthcoming. Bailouts are a sign of failure... not success... not that the bottom is...

The New Market Wizards by Jack D. Schwager. Read the Chapter on Monroe Trout. In part, trading is about discovering and exploiting edges and Monroe Trout explains this well. Zig.

Introduction Hi everyone, I am new to this site but I have been trading on and off since September 1982 (old guy!) when I bought my first Puts on Sears Roebuck on the advice of Joe Granville (a famous market tactician at the time who invented On Balance Volume). Joe called for an extension of...