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Another Day, Another New All Time High


The chart that has been amusing me each and everyday I look at it. Today we have the /ES or what I refer to as the market up making yet another new all time high. I read a statistic this morning that said that the market has closed higher every Tuesday this year. So new high is in at 1,670.25. The interesting thing I have noticed the past few days is the vix has been trading higher as the market has traded higher, not sure if this is a sign of things to come or if its meaningless. I feel like the question is whether the /ES will trade to 1,700 before having a single decent downtick.

I will be the first to admit that there are plenty of gains to be REALIZED in the market. But as I write this the gains we are witnessing in the market are all paper gains. Remember, you don't actually make money until you book profits. Remember all those folks that had made thousands and maybe hundreds of thousands of dollars of home equity? We all know what happened to that paper gain.

Look I am happy that the markets are showing solid signs of recovery in the market. But the retail investor is going to be the one playing the regret game for not booking their double digit gains when they see this market make a corrective move to the downside when profit taking eventually takes place. At the very least if these folks are not going to sell I hope they are at least selling calls against their long stock.

Anyways just my ramblings for the morning. I continue to be short the /ES and trading around the position. As of this morning my effective short is at 1,627 on the /ES. The key has been to stay small, not trading more than 1 contract in either direction. With hindsight we can see that has been key to staying in this trade, for if I continued to add to this position I would have likely been forced out of the trade. But instead I have stayed small enough to trade around the position and continue to increase my effective cost basis.

Good Luck Trading!

In The Money Trades

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