Surprisingly strong rally today. I was expecting a rally but not of this magnitude. However even though we rallied strongly breadth did not improve much and sells still remain in effect. We will likely move back and forth a little before going down again - this is my best read on the market at the moment.
Yes - today's rally has strengthened the bull case but still bear remains in force.
Lets take a look at the MCO -
Moved up a little today but nothing abnormal. We might have however seen the low for the MCO on this move but price should have more to go. Let us wait and see how the next 2-3 days work out. The decline should start within that time else something else is going on and we will have to reevaluate.
The NYSI is right at the zero line. Breaking down through it will put even more pressure on the market. The market is also seasonally weak until around beginning of October.
Several of my shorts performed magnificently today. WLT was down 20 percent today! BTU was also down but not by much. Couple of others rallied a little but I have time on my options to capture the expected resumption of the downmove.
The butterfly on SPX is stable. The Iron condor on SPX will expire worthless - mostly likely - earning some premium. I am on the lookout for creating next week's spread. I will most likely enter this sometime tomorrow or Friday. I wanted to see a little more of a downmove before doing this.
Gold is just meandering for now but I think we get a decisive move starting from tomorrow. Looking at the charts I feel it might break down again - hard and fast. I dont care which way it moves as long as it moves - I have a strangle position on NUGT. I just need a big move to profit.
Best,
PM
Yes - today's rally has strengthened the bull case but still bear remains in force.
Lets take a look at the MCO -
Moved up a little today but nothing abnormal. We might have however seen the low for the MCO on this move but price should have more to go. Let us wait and see how the next 2-3 days work out. The decline should start within that time else something else is going on and we will have to reevaluate.
The NYSI is right at the zero line. Breaking down through it will put even more pressure on the market. The market is also seasonally weak until around beginning of October.
Several of my shorts performed magnificently today. WLT was down 20 percent today! BTU was also down but not by much. Couple of others rallied a little but I have time on my options to capture the expected resumption of the downmove.
The butterfly on SPX is stable. The Iron condor on SPX will expire worthless - mostly likely - earning some premium. I am on the lookout for creating next week's spread. I will most likely enter this sometime tomorrow or Friday. I wanted to see a little more of a downmove before doing this.
Gold is just meandering for now but I think we get a decisive move starting from tomorrow. Looking at the charts I feel it might break down again - hard and fast. I dont care which way it moves as long as it moves - I have a strangle position on NUGT. I just need a big move to profit.
Best,
PM
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