Playing Close to the Fire
By Ernie Varitimos
January 11, 2022
0:00 / 15:46
Playing Close to the Fire

3, 2, 1

Am I live? How ya you doing friends Ernie here? And this is the 69th episode of the zero days to exploration podcast. Today's topic is timely, volatile, purposeful, and definitely in context with what's happening today.

The title being you won't get burned, playing too close to the fire. Now, today was just a crazy day. And for those that are listening to the podcast and, if you're listening to this afterwards, it is Monday, January 10th and today was. A remarkable day. I don't know how else to put it.

The index, the S and P gap down. Now, if you're looking at the index at gap down, oh man. I'm 30 points, maybe more 30, 40 points, something crazy like that. And on that gap, then it moved down another.

50 60 points. And then right around 10 30, 10 45, it did an about face and made up that 50, 60 points right up to the bottom of the. And now it seems to have stalled there and not sure if it's going to break through and then regain the previous high or the previous close or not, or if it's going to move back down, nobody knows.


But one thing is for sure volatility was elevated, dramatic. And then we had, something known as volatility crush once the market reversed, all that volatility just seeped out of the market. Like it wasn't even there. And so trading a day like that, obviously for most people is going to be completely hectic.

Totally. You could be totally out of your mind. Do I go long? Do I go short? Is it going to keep on going through my target? What do I do? And so what I'm going to say now, I know that people within my service are looking at today's trade and say, man, this is crazy. It looked like we were in profit and then it goes right through and then it reverses.

And then you put a couple of positions on hoping to capture, the price at some point. And it seems to be there. Only if it just stayed right there, let the premium decay and we'd be great. And then it moved through and there's still a potential for it to come back down right into our profit zone and make a fantastic day.

Now it could end up being fantastic or it can end up not being so fantastic now. We are in a day, that is without a doubt, one of the most volatile days that you'll see in any trading day, other than like a flash crash or something like that. I mean, this is almost like a flash crash and then a flash recovery, but the day's not over yet.

We're sitting here at three o'clock. There's still an hour left in the day. No one knows what's gonna have. And it's Monday, Monday is like one of those days everyone's just getting into the week. It's not like there's any economic reports. The fed is behind us last week was a disaster. When it came to fed reports and employment situation, it was horrible.