Morning thoughts 2/9/11

AdamAdam Grimes's blogsLeave a Comment

Good morning traders, I’m fighting some more computer gremlins this morning, so this will be very short and to the point. This morning, we find work equities down in reasonably large moves.  Asia is off 1+ – 1.7% across the board, and Europe is down roughly 0.5%.  Note that Australia, Japan and German all made 52 week highs overnight, failed … Read More

Are you REALLY willing to get back on the horse?

Seth FreudbergGeneral Comments, Options Education, Seth Freudberg's Blogs, Trading Psychology7 Comments

  In    Friday’s  options   post,   we talked about the tendency of options traders to become enamored of a particular strategy  simply because the trader is   on   a   brief  winning streak with that specific strategy.  This propensity is particularly dangerous because market neutral income options strategies typically are entered monthly. So   even a mere  four month winning streak—only four successful trades in a row–allows … Read More

Morning thoughts 2/8/11

AdamAdam Grimes's blogs, General CommentsLeave a Comment

Good morning traders, Rather than clouding the picture with a lot of potentially superfluous information this morning, let’s focus on the key divergence in the US market.  The chart below shows the divergence between large caps and mid caps in the US market, illustrated here via S&P 500 and Russell 2000 cash indexes, though the exact choice of index is … Read More