The market will ALWAYS deliver, it NEVER fails to do that. That is a truism. If one has observed over a significant time there are certain laws acting within the market and these laws create a predictability but this predictability is NOT price action.
We would all like to be able to predict price movements but that is governed by the laws of chaos and stochasticity so to try and predict price movement is to gamble.
This being the weekend and the market is closed, it gives us a chance to demonstrate the effects of one of the laws in the market that makes it certain that the market will deliver always.
There are NO players in the market over the weekend, no traders on bids or offers so the human factor bearing on the market is not present.
The market now acts entirely on its own, the forces on the market is now free of human interference and the perfect way to observe it and see what the market does WITHOUT traders on the floor !!
Just before the market closed for the week end, I managed to get up from sleep to initiate this position so that we could observe this natural phenomenon.
We sold 6,000,000 1.2500 PUT
We do this to bring us back to where we want to be so that in totality, our combined position can show us something interesting.
As with every position we mount, the bid/ask spread will work against us and it takes a huge chunk out of our account value but we know the market will deliver and compensate us for that…so no worries.
The account value is at $82,240. Take a careful note of this…this is important.
The positions don’t change over the weekend. It remains static. There are no players in the market over the weekend so nothing moves and nothing is going on…correct ?
The market forces that act on the market do not STOP…they are there ALWAYS. It is a natural law. Gravity is a natural law, it NEVER takes a holiday or a day off.
Over the weekend and before the market opens again, I will take a few snapshots of the account and you will see the amazing manner in which the market will deliver, constantly and without fail.
[B]THIS COULD BE THE MOST IMPORTANT POST I HAVE MADE HERE.[/B]
Remember, the markets are CLOSED…no one is trading. The only forces if any, acting on the market would be the natural market forces following a natural law which will act on the market ALL the time.
We cannot see the effects normally because of the noise and the randomness that the traders bring into the market…but we can see it as it brings up it’s head in the stillness of the market over the weekend.