Until yesterday, my one and only aggressive position — that is, my only options position at all – – was DIA October puts. I was getting increasingly nervous about the massive, inverted head & shoulders pattern on the Dow, so during yesterday’s all-too-brief triple-digit tumble on the Dow, I decided to give my heart a break and sold off the entire position (red oval on the left of the chart below).
Thank God, too. As you can see, this morning the /YM has been a bottle rocket, and the neckline for the aforementioned bullish pattern was cracked (arrow).
At this point, I’m not going anywhere near this beast. I still have 20 short positions in a variety of stocks, and most of them are profitable with only one (HLT) exhibiting the “worst” loss of about 4%. The options I dumped yesterday are down about 35% now.
Much has been made about September being the one and only bearish month of the year, but I gotta tell ya, as we approach the midway point of this month achieving lifetime equity highs every single day – – I’m really wondering if that is even going to pan out.
