US Equities Setup for Correction
Updated
Chart says it all. Went oversold at support, closed the gap from 4400. Headed higher, until it isn't.
Gonna retest ATH and double top, then rollover into correction IMO.
Gann's fan gives estimate of new final channel to ATH after correction.
Trade at ur own risk, GLTA!
Gonna retest ATH and double top, then rollover into correction IMO.
Gann's fan gives estimate of new final channel to ATH after correction.
Trade at ur own risk, GLTA!
Trade active
See related posts in blow-off ATH idea. Holding 5 spreads each SPy QQQ IWM calls.Note
Adding to position on the relative weakness midafternoon; shorting put spread Oct SPY 437/416sTrade active
Closed it out EOD on the rush for exits. Might pullback a bit before higher. If it gaps up I missed it. I like cash!Note
Side note: Selling vertical call and put spreads has been disappointing. Made money on them but nothing like the risk assumed to enter. Today made 3c off oct put vertical spread, idk hth this is possible, when I buy the damned things they just melt, today these held up really well and i just rage closed them, lol.Selection of strikes and spread legs is critical IMO. The long leg should be pennies, really worthless, the purpose of it is to control your margin required. The short leg should be as much as you dare to get; optimally, selling ATM strikes yields the highest premium but also carries the greatest risk of exercise.
Never sell a spread for more than you can assume exercise. Once these get ITM you can be served notice of assignment at any time, very inconvenient, many horror stories.
Typically I sell a 30 to 60 day $15 spread ~$15 OTM. You can certainly make money off dailies on day of expiration but it's just picking up dimes in front of a speeding train IMO. If you short ten .25c puts and buy the .05c out contract on a $10 spread, you're risking $10,000 on margin to collect $200. I don't do dailies.
Note
Futurz NOT acting like rally on, feels like a reaction wave and more bear to come IMOTrade active
Flipped in and out of QQQ puts in AM, back in cash. Short the rallies IMONote
Flipped some calls on the retrace. Watch and wait IMONote
Flipped more SPY calls from -37 > -27 lol, so dicey atm!Note
Tried the bottom fishing trick on SPY and QQQ, made tiny beer money, too much risk IMO. No bounce in it, might rally a bit in PM, short if it does; triple witching Friday!Trade active
Made a bit off one more scalping on SPY. Got a 50% retrace in QQQ. Probly a short entry IMO.Writing a bear put spread oct 376/366 diagonal.
Note
Got into Oct 378s spread vs next weekly 366s for $7 net debit, ten spreads. +bought ten VIX Oct $19 calls @3.30Note
Shorted Nov 457 SPY calls VCS vs 472s for net credit $4, ten spreads. Bought IWM put spread Oct 222/Sep 212.5 net debit $5, ten spreads. IMO the retracement intraday was short entry zone.
This is not a bullish market, we made bank off Weds rally and see how it fails!
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Well well well, fgs mad dash for exits, a short-covering rally tbs; holding/adding; rolled the short legs up in bear spreads to Friday exps for credits. Triple witching...Note
An inside day. Picked up some bear shares, SDOW, SQQQ, SPXS, TZA. These don't expire but do suffer decay, hedged all with covered calls.Note
NB: SPX rejected repeatedly at 4486. Looks like a bear rally. Holding shorts, bought ten cheap calls for insurance!Note
VIX picking up again after brief excursion below $18. Now in 50 Oct $19 calls.Note
Small caps, DJI giving it back. As usual the rally appears to be mostly in megacap techs, a MOMO move.Going into the close looks like a B wave bear rally, choppy and tentative. VIX rising. It's not bullish.
Trade closed manually
Sold it all. Watch the bastards bounce it now.Trade active
Msde bank off daily calls on the midday bounce. Shorting puts on the deep dig in Oct 430/400 credit spreads for $3 net.Note
Used the credit to buy weekly calls in QQQ 374sNote
Loaded up on calls EOD. Would not be short here! It won't do this twice, feels like an endgame move.Bear momentum peaked on triple witching IMO.
Next move: Big Bounce IMO
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