OK, quite a volatile day! Price popped up above 27.60 in the Sunday Globex (Asia) session, where it traded sideways in a pretty narrow range, through the holiday trading yesterday [27.50 – 27.75].  Then in Monday night’s Asia session it started marching up, just ‘ticking’ the Tuesday 2/9 highs at ~28.00.  That was 7pm local time.  By 10pm that entire surge had been erased, as price returned to 27.70.  It stayed in a 40 tick range [27.60 – 27.80] from then until 4am, then completely dove down spectacularly, making a low of 26.87 in the 5:00 hour, just ticking last Thursday’s day-session swing low at 26.88.  Then in the single hour from 6 – 7am this morning it vaulted back up to 27.745, basically a .90 range in one hour.  Since then it has been back to 27.14 and is now in the central area of the bulk of this recent range, sitting around 27.40.

My thoughts about this price action is that it would appear to my eye as nicely setting up a buy under today’s lows, as quite a number of traders will assume the shake-out is over and that the strong rebound will lead to immediate follow-through to the upside.  That will lead to a cohort of insensitive/panicked/motivated selling if/when those lows are tripped, which would likely propel price through the Wednesday – Thursday overnight low of 26.75.  That would cause me to anticipate price trading in the 26.30 – 26.50 area, which is the lower level of the range set from 2/2 – 2/8.  I would be skeptical of immediate further downside from there, and would be interested in potentially establishing a long position with the anticipation of a return to the 29.00 area in the coming days and weeks.

The immediate thing that comes to mind is the dream element of making the agreement with my roommate Derek to substitute in for the double-booked date with Mia, the Asian woman, and the other ‘rough’ woman I met in the field by the school.  Firstly, I believe the decision to make a date with the ‘rough’ woman shortly after being caught in a weird windstorm is symbolic of becoming ‘caught up’ in the market’s manipulation phase.  I bought puts on Monday 2/8 with the belief that price would return promptly to the 26.00 area.  Price went into further accumulation instead, thus making my entry ‘early’ and obviously sub-optimal.  So, once Derek agreed to the deal I discovered that his side of the apartment was nicer.  This would seem to be representing the observation of price trading slightly above my trade entry area in the subsequent days, as obviously a higher price to establish a short position is more desirable.  In this case those more favorable prices were not available to me as an options trader where the exchange is only open during US day-session hours.  So, the ‘date’ with an Asian girl turned into a daytime back & forth on the streets with Mia and her family — much like how price went sideways during the holiday trade on Monday.  Subsequent to that was today’s session which was extremely volatile, and that conjures the element of heavy drinking that was alluded to in the original offer the ‘rough’ woman made to buy up to 18 beers for me.

I’m beginning to believe that the ‘rough’ woman in that dream could be the Kelly from whom the gifted orange shirt came from in the Suggestive Gift dream.  When my sister questioned me about it I was a bit lost about how it pertained to my sexual preference, but now it makes more sense.  Essentially, I have the underlying belief that price will rise from the 26.00 area at least once more before going into a more significant move to the downside.  The element of going up is prevalent in several other recent dreams, btw.  So, the question is: if I have a belief in higher prices, why would I have taken a short position last week?  And that is very much like my sister’s question to me, paraphrasing, If you are straight, then why do you have that shirt?  

(The whole gay/straight idea as it relates to trading is that once a trader has established a fundamental belief or underlying thesis about price’s trajectory, then would they ever consider taking a trade in the opposite direction?  Do you know any people who identify as heterosexual but maybe would fancy a short-term, ‘just for fun’ type of thing with a same-sex partner(s)? In trading (only), I am absolutely interested in ‘going both ways’ — but it’s actually quite difficult to remain objective enough when observing the evolution of price action to pull it off successfully, since once a particular belief is committed to, it’s very hard to act contrary to it without bringing about feelings of doubt and/or sabotage.  Like sexuality, there is a preference spectrum of primary orientation and then responding to ‘peripheral’ opportunities that may arise.  In this case, I got short because it seemed like a compelling opportunity, and this is one way I like to get my kicks.)

So, when price made a huge dive today, showing up as orange on my chart, I was happy because it went in favor of my short position, even though it was apparently counter to my expectation of eventually resolving to the upside on the next higher order pattern.  From that point in the dream, I went downstairs, paused in the hallway, then eventually found the proper guest bedroom.  So I am anticipating some further decline from current price, targeting the 26.30 area.

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