1/x A couple of important thoughts:
1) failure @ 1.5 std dev up of 20 day for last several days keeps the market technically broken & shows a lack of buying strength given where we are in the OpEx cycle, but we’re still above 20 day & stable 2) fixed Ivols came down on the drop,
1) failure @ 1.5 std dev up of 20 day for last several days keeps the market technically broken & shows a lack of buying strength given where we are in the OpEx cycle, but we’re still above 20 day & stable 2) fixed Ivols came down on the drop,
2/x this was particularly the case in the post election ‘hump’ which came down $8, despite the sudden decline. This is important because this is where dealers were short 3) Vanna flows & Vol compression are @ their peak until 10/12-14.Stabilization here would give way to positive
3/x flows once again, particularly on the open & close of trading 4) after 10/12, flows become less supportive & post 10/14 in particular we could see the total disappearance of support, going into a 5 week OpEx cycle.
-I am slightly long right now from EOD entry.I Would sell on
-I am slightly long right now from EOD entry.I Would sell on
4/4 what looks like a meaningful break below the 20 day on a closing basis.
I would also sell on a meaningful move back to 1.5 st dev up on the 20 day
And would flip from long to short on 10/12 or with a close below the 20 day SMA. Good luck 🍀
I would also sell on a meaningful move back to 1.5 st dev up on the 20 day
And would flip from long to short on 10/12 or with a close below the 20 day SMA. Good luck 🍀
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