Sell Nothing Signal needs an expanded definition, which include shifting to mental stops and selling a Put at or near where your out of the money stop is placed. Naturally this applies to investor portfolios, and is not about day trading accounts.
During Last weeks action; programs sought and found supply with the in place information...provided by fixed stop loss orders, set by owners. The extreme ranges were the information visible to the machines.
There fore Sellers are created by the machines, seeking price at the margin, within an inertia laden complex. The at the margin price lower, might be the only intent available to a goal seeking program.
The Sell Nothing signal shall now and near term include movement to mental stops only....and use of puts in some combinations.
And....the wisdom to replace your stop, below the trade with a Sold Put, as near to where your stop is as possible, perhaps buy cheaper out of money puts, below where your stop would have been, and where the PUT sold position is your intent to buy.
This should serve to adapt counterprograming of machines, whose programs are goal seeking, cheap investor inventory priced at margin with out of money stop loss.
Small accounts; 300 shares per position or less, should probably just remove the hard stops, be margin neutral, and go mental. probably not buy or sell puts, unless you are always out of touch, unable to tend to your accounts, and the number of 300 or less positions is large. |
