No new trades this morning. Profit Taking There are 35 days to December expiration, but taking out holiday trading and weekends, only 23 days of normal trading. But there has been nothing normal about trading since the late September - early October tops in all of the market averages. The Armageddon scenario that has long been on our radar is unfolding as would be expected if it were in play. But six weeks, 30 trading days, and only an 8% - 10% decline so far, is not enough to be completely certain it's "game-on." The expected fireworks have not yet arrived, but in light of the current trading environment, the strategy of taking limited gains, i.e, 50-100%, and exiting completely, should yield to a strategy of taking only partial gains and letting the rest ride. That ratio is up to you, 75/25 makes sense to me. Worst case, the market doesn't collapse and gains are limited. Best case you participate in the higher gains, but with less of a position. The alternative is to raise significantly your profit targets, or, not have any fixed profit targets, just manage the size of your position. This becomes a very aggressive way to trade this system, but if there ever was a time to be very aggressive, it is now, in the current market conditions. One thing I've learned through all these years of providing this service is that each individual trader is unique in their approach to trading. It is a high stakes poker game and winning is defined at times by how long you can stay in the game. Taking smaller gains and standing aside will keep you in the game longer, but at the cost of a huge payday under the right circumstances, Letting it all ride because you are betting on one extraordinary scenario is a risk laden strategy, but with a once in a lifetime payoff if the scenario plays out. Taking out the October 29th lows will be a game-on moment. Keep your eyes on that prize.
