The Magnificent Sigmundo Attempts to Move the Market

Paranoia strikes deep
Into your life it will creep
It starts when you're always afraid
You step out of line, the man come and take you away.

~Buffalo Springfield - For What Its Worth

First of all, I'm only referred to as Sigmundo in Mexico, secondly, magnificent is a bit of an overstatement. I've already noted that the recent market whipsaw that traders love so much here in this previous post. Since I would rather have some sort of long-term upward trend happening now I will jump into the fray and buy the August at-the-money SPY puts which means I expect the SPY to go lower over the next few days as the recent pattern would suggest.

Why would that change market direction? Well, in my own mind, paranoia sets in when I've made several wrong trades or when a "can't lose" pattern develops and I finally jump on the bandwagon. I feel as though the market is targeting me personally and will run in the opposite direction of my directional trade. And in this case the current pattern will be broken once I place this trade. I say its black, market says its white and the market quits whipsawing back and forth and start a new upward trend...simple.

I know deep down that the market isn't really trying to bankrupt me. Well... it is... but not me personally. Even so, paranoia is a strong influence. That's why I always have a plan in place like the MensaMonkey and stick to it...except for times like these when I'm trying to prove a point and at the same time make some loose change while I have the spare time. My main point (if lost in my paranoid rambling) is that patterns only last so long and when the masses catch on they disappear faster than fresh meat in a piranha pond. Of course, if I am wrong and the current pattern doesn't dissolve I make a small profit. I think that's a win-win. Win...I was right and made my point.  Win...I was wrong and made $$ on the puts.

See you when the SPY hits 134*.

Monkey art from here:
http://jazzyjzmc.deviantart.com/gallery/#
* SPY currently at 138.40.