Thursday, November 15, 2007

Tale of the Pivots - Part 3

Well I learned something from yesterday. . .believe in the pivots. I was encouraged out of the open that if the Qs could break above the PP pivot then R1 was a good bet for the day. The break, in fact came to the downside (not a big surprise after yesterday's weakness) and after chewing down a bit, looked like it might stabilize at 50. I got looking at yesterday's chart and thought the S1 was the more likely target and sold some Dec puts to hedge my longs. Sure enough, right down to S1, then some rattling around before dropping through it on increasing volume. The technicals started to turn right about then so I covered the puts a few cents too soon, but was glad to be long for the last 20 minutes. Expirations are always squirrely with the big dogs trying to make pins that you and I have no way of knowing about and the games that get played are frustrating for the little guy to say the least (see yesterday's vent). The Globex is flat as of 6:30 pst, so little clue for what's in store for Friday.

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