EWQ
GOING FLAT ON IWM/SPY SETUPS IN ADVANCE OF BREXITAlthough I always hate to miss putting on trades in a high volatility environment and generally don't like to exit setups merely because "something is happening," Brexit may be one of those special situations where it is likely that whichever way Brexit goes, the movement may be overly large, whether it takes the form of a relief rally on Bremain, or a significant downturn on Brexit vote ... .
Moreover, I would also like to devote some attention to plays in the non-US markets, so I'm watching the options playable Euro ETF's like FEZ (Euro Stoxx 50), HEDJ (Europe Hedged), EWG (Germany), EWU (UK), EFA (MSCI EAFE) and EWQ (France) (they basically all have the same trajectory; the question is which ones will be reasonably liquid to play via options ... ).
France: No confluence short or the art of patience IIConfluence area is a bit higher, but price reached a polarity zone, where through the years changed from support to resistance enough times to mark her as area of interest.
Fresh visit to this area has most of the times the probabilities leaning towards to rejection, before maybe higher, gun the shorts - like mine - and go deeper inside the confluence area. In such a case, according to PA there, a second opportunity for the shorts will be given and who knows, another note of self discipline and practice patience will be written again.
The trend is clearly up but a confirmation of the evening star will provide comfort to the trade.
Cheers
Panos
