PLAYING DEAD - S3

Today is a pattern I'd call PLAYING DEAD. Like a spider or snake, the market plays dead and has a DROOP at the close. It makes the BEARS feel comfortable and no longer scared of the short-cover rally. This is a pattern that occurs near the tail end of a Bear move.

Watching the tape, unlike manic spikes, today's rally was a stair-step march higher. Again, playing dead. Its like Jackie Chan's DRUNKEN MONKEY. You try to take a swing at it, and it just droops in response.

It was a deadly market. The right way to trade was to bid close to 1200. I didn't do that.

I waited until 1220 before I took action and began selling calls. I didn't capture all the upside, but I identified the pattern and captured a good chunk of it.

The trick will be the follow-up. More tomorrow.