Tuesday, July 31, 2007

Weekly S&P Chart

I see quite a bit of doom and gloom and I suspect quite a few who may have taken the weekly Bollinger Band trade have already bailed on the position. Take a good hard look at that chart. The S&P is down .25% so far this week. What could anyone possibly find in the chart action so far to think that this trade is going to end unprofitable. Heck so far it looks like the market is wanting to rally. As far as I can see there's just as much chance that the market works its way up that long tail as falls rapidly. All I'm saying is if you have a system that produces a win 93% of the time and so far your draw down is .25% I would be inclined to let it work at this point.