Exercising Options

The option of trader's choice comes into play when I make a trade without a CMI signal. I had anticipated a buy of the QID for tomorrow and acted on it today. Looking at the the data from today, a no trade signal is still in place so I am in the QID without the backing of the CMI. This was not expected so I will either get out rather quickly or hold on based on market conditions. This buy illustrates my lack of discipline. Now the tug of war between a very oversold market and the recent break of support level for the S&P, Dow, and NASDAQ begins.

I do not know how the market will react which is one reason to stay out. Lesson learned...again. Smart money says to trade the plan but the gambler says go with the flow and ride the market down. Normally, I would not short an oversold market but then again some of the largest CMI gains resulted from buying QID in an oversold market, and conversely buying the QLD in an overbought condition.

I'll bang my head on some river rocks if I lose some on this trade...or call myself a genius if I make a percent or two.