Market Extremes

We were stopped out again this week, in a not dis-similar fashion to the second week in September. Both these events were due to a misinterpretation of the market's extremes, overbought in September and oversold here in November. Adjustments have been made to accommodate such extremes in future, where by the markets very nature, moves can be more volatile. Speculating on the these extreme pivots accurately is where the opportunity lies for dramatically increased profitability. We are maintaining our oversold interpretation this week and will place an order to buy 5 contracts at the market open of 1364. Should the market fall we would buy a further 3 contracts at 1345 (or the full 8 if our initial order is not filled) We will set a stop at 1333 and a target price of 1393 where we will sell all contracts and short (sell) 3 contracts at a price above that level, reversing a portion of our position.