TRAP DOOR - 7/18/07

Today is a Trap Door. The recent action has been when we hit a S1, and the market opens below the recent lows, it sells off pretty significantly.

The bullish sentiment is still prevalent which leads to sharp rallies; however, it is not enough to propel us to new highs. Basically, the bull case rests on having enough bears to continue to build a decent short base so that we can spring higher.

I shorted 1554 & 1556, and I covered at 1552. I should've been more aggressive in letting my profits ride.

I am recently developing more of a long delta hedge approach to trading. That basically means having limits spread out every 2-3 pts or so. It may not be optimal, but its working for now.