Too Far, Too Fast?

I love the fast lane! When I was younger, I actually lost my license for a short while for too many speeding tickets. Anyway, experience is causing me to slow down on the road (kids also do that). I also think that the market is saying the same thing - slow down.

I keep preaching about the 1490 mark on the S&P as being a critical support/resistance point. The market took off today and snuggled right up to that point and fell off. I realize that moving through 1490 today may be a "bridge too far" considering that the index is up more than 1% (as of this writing), but without breaking through and holding 1490, we are just now in a trading range with 1490 being the top of that range.

I therefore sold half my calls shortly after open this morning. I sold everything that had a December expiration (AAPL and GRMN). I still hold APPL, GRMN, and PCP January calls, but those positions are lighter at the moment than usual. I am playing this a little more conservative than I usually do.

I realize that the market this week has been event driven and that you have to take advantage of what the market tape gives you, but sustainable rallies are not built on rocket launches.