The chronology of my trading day with a bearish option position:
4:30am - Wake up, check futures, DJIA + 30.... "Dang" I thought.
7:00am - Brief to fly, check futures, DJIA + 50ish... "Crap" I thought.
9:30am - Sortie complete, check market, DJIA in steep decline... "Sweet!" I thought "That's more like it"
10:00am - Begin debrief of sortie feeling good about market movement
10:45am - Debrief complete, check market, DJIA moving rapidly higher..."What the heck?"
10:46am - Read CNBC headline about presidential remarks regarding fiscal cliff... "You gotta be kidding me."
10:47am - Sell bearish option position for a cumulative loss of $5...
No doubt it was a strange day. DJIA outstripped the S&P and the NASDAQ closed significantly lower. Who knows... new day, new jet as we say in my line of work.
The RumWave chart is clinging to life by the smallest of margins, and at one point today it had fallen below the "red light" criteria. Nonetheless, still no red light at the close. Elliot Wave theory would suggest that today was a "B" wave and that tomorrow should be a downward "C" wave. We'll see!
GOOD LUCK TOMORROW!