Now that we have broken down out of the consolidation zone in each of the major indexes, it is highly likely that we have a significant downward move ahead. Given recent volatility, we could see a headfake rally virtually anywhere. However, we have broken through lows that were tested on multiple occasions, and are in a clear downtrend, both long- and near-term. We have lower to go in the immediate future. In this volatile market, I am having more success trading options than equities. This is a personal style thing, and relates to my relatively tight stops on equity trades. I tend to accumulate a much larger number of small options positions gradually over time. Because they are small, I do not get anxious when they go they wander in the wrong direction, whereas I get very anxious when my equity trades do not work immediately. So mainly this is my own personal emotional issue, and I work to design my trading routine to minimize the emotional component. In this [More...]