February 28, 2011 Morning Trade Update

Hi All,

Please note there was an adjustment done on the 55 day trade on Friday. It is explained below.

I’ve made some poor choices this month as I’ve been over reacting to normal market moves. While this is bad for me, it is good for you as a learning tool. This shows how one over reaction sets off a series of events that do nothing but chop you up. Earlier in the month I over adjusted both the 55 day and M15 positions to the up side. If you go back and look at the notes, I knew it when I did it. This set off a series of events that should never have happened. Because I over adjusted up, the normal pull back last week forced me to adjust down right at a support level in order to protect myself if support did not hold. Of course, as we saw on Friday, the market bounced hard which in turn is forcing me to adjust back up. Had I never over reacted, I would not have needed any of those adjustments and both trades would be up significantly. Since I did over adjust I had to make another adjustment on Friday and will likely need to do so again today. Anyway, that is the past and nothing can be done except to learn from it.

The adjustment on Friday was to roll the 800/850 side of the 750/800/850 butterfly to a 830/880 call spread. No adjustments were made on the method 15. Right now the T+0 line is not correct on the positions but as of Friday PM the 55 day was down about $150 and the method 15 was up about $200, both negative Delta.

I’ll keep you updated…

Happy Trading!