Tuesday, November 2, 2010

11/2 Daily Summary

This is a tricky one, hitting this adjustment just prior to the FMOC meeting is not the best scenario, as the market can go up and down pretty hard Tomorrow, so I must prepare for all scenarios, including a whipsaw action hitting my up-side adjustment and then crashing back down.. I've created a special type of order to handle the whipsaw action, posted a screen shot of it on the facebook page (see link to the right). See the extra decision node I added to the game plan chart, where it shows what I'll do if we hit 2165 and then crash back down.

Only exposure I have is if we keep going up and volatility drops drastically, this will make me go deeper in losses. The mitigating factor is the FMOC where vols may be higher during the day and during the price action, so my plan at this time is to hedge if we go to 2165 and do a manual cut and roll anywhere above this level, Probably will wait till Tomorrow for the cut and roll.