$SPX - Chart Link- first off the market, SPX
after losing the 9 EMA generally will test the 20 SMA on the
daily.
Regarding the SPY system open short, clearly a nice trade! That
trade is looking to exit out today. However on a side note my work
suggests that after such an extended up move one could probably
hold off on closing some of a position until price closes below the
15 SMA
Thirdly my wife's been in China now for a month as some of you
may know, I've been Mr Mom. Her mom had cancer, she passed away on
the weekend. Anyway been busy with that stuff in the morning and I
may not be able to post much today, however I will keep you abreast
of the SPY system, however officially it's going to close out as
long as price closes below the 8 day SMA, but like I said I would
not be surprised to see price go lower to the 15 or 20 SMA
never trade market orders on options. realize you will always
lose some on the spread,it's just how it is. I generally try
to buy my options 1 tick over the mid price and sell them one tick
below the mid price. Obviously they are moving and it's tough to
hit a moving target, sometimes I have to try to adjust my order a
couple times to get filled
yeah mid doesn't guarantee a fill, that's why I do one over for
the buy and one over for the sell, esp when the market is move and
the options are a moving target and I need to fill 50 contracts
quickly
since the exhaustion trades do not catch big swing trades,
simply look to a quick reversion to mean reset, was not a bad idea
to close out at least 1/2 the short trade from the SPY system.
Had I not been so busy with things I probably would have sent
out an alert for that, or even closed it out entirely. What I don't
want to happen is for the market to have a magic rally back above
the 8 SMA in the afternoon and for the trade to hold.
Matt - since the exhaustion short is meant to be for quick
trades, does your system have ability to identify or stay in a
short position if it could turn into a swing Trade? Trying to gauge
probability of maintaining short on broader market turn. Also what
are your thought on VIX as a short proxy? Thanks.
Market, SPY system, other comments
Posted by matt on 2nd of Dec 2019 at 11:01 am
$SPX - Chart Link- first off the market, SPX after losing the 9 EMA generally will test the 20 SMA on the daily.
Regarding the SPY system open short, clearly a nice trade! That trade is looking to exit out today. However on a side note my work suggests that after such an extended up move one could probably hold off on closing some of a position until price closes below the 15 SMA
Thirdly my wife's been in China now for a month as some of you may know, I've been Mr Mom. Her mom had cancer, she passed away on the weekend. Anyway been busy with that stuff in the morning and I may not be able to post much today, however I will keep you abreast of the SPY system, however officially it's going to close out as long as price closes below the 8 day SMA, but like I said I would not be surprised to see price go lower to the 15 or 20 SMA
man that ES breakout closed
Posted by matt on 2nd of Dec 2019 at 11:51 am
man that ES breakout closed out perfectly on Friday. Well if it hadn't closed out that day it would have today, but still nice
Matt, considering the large spread
Posted by simpsongc on 2nd of Dec 2019 at 11:35 am
Matt, considering the large spread on the SPY options when you initiate a trade do you go in at a limit order or just a market order.
never trade market orders on
Posted by matt on 2nd of Dec 2019 at 11:40 am
never trade market orders on options. realize you will always lose some on the spread,it's just how it is. I generally try to buy my options 1 tick over the mid price and sell them one tick below the mid price. Obviously they are moving and it's tough to hit a moving target, sometimes I have to try to adjust my order a couple times to get filled
I like the to buy
Posted by stevieb294 on 2nd of Dec 2019 at 12:34 pm
I like the to buy options (I trade spreads) at the midpoint exactly just to keep things simple, easy and quickly filled.
yeah mid doesn't guarantee a
Posted by matt on 2nd of Dec 2019 at 03:23 pm
yeah mid doesn't guarantee a fill, that's why I do one over for the buy and one over for the sell, esp when the market is move and the options are a moving target and I need to fill 50 contracts quickly
since the exhaustion trades do
Posted by matt on 2nd of Dec 2019 at 11:20 am
since the exhaustion trades do not catch big swing trades, simply look to a quick reversion to mean reset, was not a bad idea to close out at least 1/2 the short trade from the SPY system. Had I not been so busy with things I probably would have sent out an alert for that, or even closed it out entirely. What I don't want to happen is for the market to have a magic rally back above the 8 SMA in the afternoon and for the trade to hold.
Matt - since the exhaustion
Posted by ojc345 on 2nd of Dec 2019 at 12:36 pm
Matt - since the exhaustion short is meant to be for quick trades, does your system have ability to identify or stay in a short position if it could turn into a swing Trade? Trying to gauge probability of maintaining short on broader market turn. Also what are your thought on VIX as a short proxy? Thanks.
Sorry for your family loss
Posted by retirefire on 2nd of Dec 2019 at 11:27 am
Sorry for your family loss Matt. Yes took profit while SPX was filling GAP.
What about setting a trailing
Posted by cozz101 on 2nd of Dec 2019 at 11:27 am
What about setting a trailing stop (on exhaustion trade) based on just below the 2 hr ATR? Would that give back too much or be too tight a stop?
Thanks for the update Matt
Posted by cozz101 on 2nd of Dec 2019 at 11:11 am
Thanks for the update Matt and thoughts and prayers are with you and your family regarding your wife's Mom.
my condolescences to your wife.
Posted by alseq on 2nd of Dec 2019 at 11:09 am
my condolescences to your wife. all the best for your family
pretty close now to the
Posted by alseq on 2nd of Dec 2019 at 11:05 am
pretty close now to the 20 SMA anyway...6 points away i think