Weekly Wrap

I'll be positing a lot more this weekend, here's a basic video that explains a lot, especially my last post of the day. I remember the days of watching the market and depending on indicators like MACD ti try to determine reversal points. 3C is a real leap forward, we can see what is happening as it happens and before the turn in the market, even better, we not only see smart money, but we can start to better understand the behavior of Wall Street, this is a huge advantage. So many people are stuck in the past, following the thousands of technical analysis books that have each laid their claim to fame with some new indicator or set up. I've back tested so many of these in StockFinder only to find out that they rarely even give you the same return as the market, many actually under perform, but before back testing, any author could easily cherry pick a few examples and base a system on it that a generation of traders follow blindly.

This week we saw something very new in 3C, we saw risk aversion from smart money and the reasons seem to be clear as you will see in the video. We are on the right track, we are a step ahead of the crowd as I read the message boards, so many are blind to things that are right there in front of them-human bias is a hard thing to overcome. Understanding in advance that there will be a bounce, that it is likely to be brutally scary, but that in the end, it's just a bounce, gives us confidence and allows us to make trades that our logic would never consider.

I believe what we are doing here, for those who can stick with the risk management and overcome the fear that the market intentionally instills in us, is ground breaking. I look at the typical trader, someone I advise with a lot of money in the market, and count how many times the account would have suffered devastating losses if it were not for my ability to show him proof that what he was about to do would be a huge mistake, and I am reminded of how Wall Street prays on our emotions, of how manipulated Wall Street really is and how they have a number of plays that they run over and over again, you can almost catch the routine.

This week was enlightening, it adds more to the experience bin and leads to a better understanding. When the market started moving up today, I'm sure there were a lot of people trying to buy calls that would expire worthless. I see the huge open interest in the SPY calls at $110-$112 and we now know who the seller was and who took it on the chin, it wasn't smart money's loss. Again, they pinned the market below the strike price and collected a lot of premiums.

I'm getting some great feedback and comments and I think this group is growing together, myself included. Your questions lead to new discoveries. Your insights are confirmed in analysis and ultimately your participation adds value to what we are doing.

I hope you enjoy the video and have a great weekend. It looks like we may really get that bounce after all, but it's just the cherry on top. The daily accumulation of positions is helping I believe, to set you up for an unprecedented opportunity as this market moves against every human instinct and emotion, it will just mean more gains for us.

Have a great weekend and check back for updates.

Click on the video for a bigger picture.