We caught the downturn on the dime on Wednesday and yesterday it was crazy from the first minute – so much so that I had to send a 7:15 am Alert to Members regarding the earthquake in Japan, an update on the "Day of Rage" (as we expected, a big nothing) and how the Wall Street Journal was once again ripping off my headlines.
On the whole, we got the spike low and then the ridiculous run-up we had expected for Friday – the Japanese quake was just the "reason" de jure for the bots. Although I sincerely hope I do not have to remind our Members of Rule #1 (as we only have two rules) – I did send out another Alert at 9:34 saying: "$25KP Moves. I do not have time to check prices – take money and run on FAZ short calls, USO long puts and EDZ of course. More to follow." - as there was not a second to waste if we were going to sell into this particular excitement.
At 9:40 I was already flipping bullish and we added the DIA March $120 calls at $1.03 in the $25KP and then, by 9:59, we had a slew of adjustments to make, which I will detail below. I did not have time to mention it in the morning, so I will mention it now – one of the only times it is acceptable to put in market orders is when you are selling into the excitement. If you have 3 positions to dump out of before the market turns and 7 other positions to look over to decide what to do with them – you’d better execute those sells but that…
