Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Slow Miners

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

I’ve mentioned my put position on XME. This morning, I took advantage of weakness earlier and sold my January puts so that I only have March now. I intend to double this March position in the near future. The reason is simple: I think this beast is heading much lower, but it moves with the speed of Oprah Winfrey at the 24th mile of a Marathon.

Liquidity moves markets!

Follow the money. Find the profits! 

The above analog between the last major downturn and the most recent history is the basis for my position. It took five months the last time we did this pattern to make an intermediate low, and it took three years (!!!) to reach its ultimate nadir. In other words, having options that don’t expire for almost 150 days is just what the doctor ordered.

The second chart, above, takes advantage of SlopeCharts’ ability to expand in any of the four directions to illustrate the timespan I think will be required for this thing to hammer down. I intend to be terribly patient with this one!

On a totally separate note, my NFLX puts (yesterday) and CMG puts (yesterday) did great. Sadly, it’s just virtual money, but I still have a feeling of victory.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.