Below is a brief excerpt and the "Chart of the Day" from today's Early Look note written by Keith McCullough.
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I’ve been referencing the OODA (Observe, Orient, Decide, Act) Loop framework for my in-Game decision making for many years. It was developed by the “Mad Major”, Air Force Colonel John Boyd. It was designed to help fighter pilots respond accurately to rapidly changing conditions. Let’s review what I just drove through. This recent move in the VIX was a Top 3 Most Rapid Ramps In The Rain of all time: 1. VIX closing level last week = 13.81 2. VIX closing level on Tuesday 12/17 = 15.87 3. VIX closing level on Wednesday 12/18 = 27.62 While the rain started coming down hard on that move from VIX 15-20, I started doing what I always do, hit the gas and got more aggressive buying and covering. Then the rain basically blinded me on the push through VIX 22, so I stopped the car. Since this rarely happens to me, I don’t take on incremental water (risk) WHEN I can’t see the next turn. I just stopped trading. |
