3309 Drysdale Ct
Edwardsville, IL 62025
$SPX - Chart Link- first off the market, SPX
after losing the 9 EMA generally will test the 20 SMA on the
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
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 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 on the SPY options when
you initiate a trade do you go in at a limit order or just a market
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 options (I trade spreads) at the midpoint
exactly just to keep things simple, easy and quickly 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
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.
Sorry for your family loss Matt. Yes took profit while SPX was
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 and thoughts and prayers are with you
and your family regarding your wife's Mom.
my condolescences to your wife. all the best for your
pretty close now to the 20 SMA anyway...6 points away i
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