I was so in the zone yesterday that I was still placing orders at the market close and wondering why they weren't getting filled. I looked up and noticed for the first time that the S&P was down almost 5% and that the Dow was down 512 points.
Yesterday was the first time since getting all my mercury fillings removed that I felt like I maintained a sense of complete control and concentration for the entire day. I didn't get every trade; I wasn't perfect; but I felt like I traded with a mixture of calm, controlled aggression, and creativity. It was a very good day. I grabbed a good chunk of SDS in lieu of shorting the e-mini and rode it. I scalped calls whenever it got ugly. The best thing is that my emotions were like the surface of a quiet pond, especially during the afternoon margin-call meltdown.
Looking at a daily chart, the range is unbelievable. First stop on a good multi-day bounce could target 1260 on the S&P cash.
Much below 1200 could cause a meltdown and would target 25 point levels, meaning the next levels of interest would be 1175, 1150, etc.
One thing to be keenly aware of is the world's largest canary: Brazil. Brazil's Bovespa index is nearly back to July 2009 levels. As a commodity country, this should be viewed as a leading indicator. China is their largest customer. Enough said.
I'll be writing a longer post about this shortly.
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