Honestly, I am lost as to where is the direction. I tend to agree with him. It will be verified by the market eventually. You only need to wait another 2-3 weeks.

Sometimes a trader does not need to know which way the market is going to move. If you have a directional bias, it is great but be prepared to be wrong. When I say the market "should" continue to trend to this major support or resistance it is because I really don't have a clue.

In this kind of trading situation, you can still trade even you are quite clueless. In that way, you can't be wrong, and pride and emotional attachment are not an issue. I trade on a statistical edge and proper money management.

If it goes up as in the video, I will make good money. If it goes down, I am prepared and will manage it to profitability.

While it is good to have a bias, it is bad to be totally convicted in one direction. That's how many traders make good money and lost it all.

As you know, I use options as part of the core strategy in my trades. I have a very clear strategy before I start any trade.I keep good record of EVERY trade. If I am wrong, I have secondary exits through adjustments. I seldom use stop loss. There is little emotions of fear and greed. I try to leverage the volatility to my favor.

I have learn over the years to be always prepared if the market turn against me. It requires some skills and experience but it is definitely possible to trade this way.

I think over the last 6 months, I have been directionally wrong 40% of the time. But I am 90% profitable on all my trades when I close it.

This month is the first I lost control of one trade that I lost more than 30% it happened to be GLD ratio trade! I deviated from my plan. For most of the trades, I seldom lose more than 10%. But I must have more than 5 trades that give me >100% gain. For the rest of the trades, I have an average gain of about 25%.

Last year was an exceptional year. Lets see whether I can do just as well in 2010.