funny the option trades for yesterday's SPY system entries
actually closed up about $2 from yesterday's close. I don't know
where there were at the lows but given May expiration and was in
the money not as bad as you might think maybe $24 - 25 vs the 28.75
entry
anyway crazy day, tomorrow will be more telling and should give
us more evidence on things. Steve is analyzing and will give his
thoughts.
here's the open trades. At the lows today the Bull Exhaustion
was set to trigger, I think one of the ES systems might have been
triggering too but those signals all went away
nothing new with the systems guys - the SPY or ES isn't even
back over its 9 day EMA yet
as far as the market I have to look at things more this week, I
got a call from a client asking about removing his hedges - first
off obviously yesterday's gap down then reversal would have been a
good time to remove those in the morning LOL, you had a hell of an
opportunity.
could the market have made a trade low yesterday? yes perhaps,
the QQQ's got well into our target support zone and the SPX nearly
hit one of our levels. I'd like to se the action today. One thing
I've noted over many years is that generally these news events
market trade lows vs the start to an additional major decline. I
told one of my clients on Tuesday who was very worried about Russia
invading that, in my opinion, I think once the invasion begins
we'll get a big gap down and low - the event will mark some of
trade low as the market had been selling into the rumor.
Basically like buy the rumor and sell the news but inverse:
short the rumor and buy the news event. At worst, if a low
wasn't put in yestrday I think we would see a retest of the
lows or another low test those areas we showed.
Posted by mitchell on 25th of Feb 2022 at 10:35 am
Matt / Steve - Could you comment if there are valid falling
wedges forming on Daily/Weekly Index charts? If so, would like to
hear your thoughts. Thanks.
those call options purchased on Wednesday for the SPY systems
for 28.75 - 29 (for the 2nd entry and for the QE 3.2) are trading
at 35.7 now. the first entry options are still down some obviously,
trading around 22 vs the 24 entry, but we have 3 times more of the
options from Thursday that are up about 6 points from entry
CLEARLY how these close is what matters, that's just where they
are at this time
SPY and ES reversion to mean open systems trades
Posted by matt on 24th of Feb 2022 at 04:40 pm
funny the option trades for yesterday's SPY system entries actually closed up about $2 from yesterday's close. I don't know where there were at the lows but given May expiration and was in the money not as bad as you might think maybe $24 - 25 vs the 28.75 entry
anyway crazy day, tomorrow will be more telling and should give us more evidence on things. Steve is analyzing and will give his thoughts.
here's the open trades. At the lows today the Bull Exhaustion was set to trigger, I think one of the ES systems might have been triggering too but those signals all went away
nothing new with the systems
Posted by matt on 25th of Feb 2022 at 10:20 am
nothing new with the systems guys - the SPY or ES isn't even back over its 9 day EMA yet
as far as the market I have to look at things more this week, I got a call from a client asking about removing his hedges - first off obviously yesterday's gap down then reversal would have been a good time to remove those in the morning LOL, you had a hell of an opportunity.
could the market have made a trade low yesterday? yes perhaps, the QQQ's got well into our target support zone and the SPX nearly hit one of our levels. I'd like to se the action today. One thing I've noted over many years is that generally these news events market trade lows vs the start to an additional major decline. I told one of my clients on Tuesday who was very worried about Russia invading that, in my opinion, I think once the invasion begins we'll get a big gap down and low - the event will mark some of trade low as the market had been selling into the rumor. Basically like buy the rumor and sell the news but inverse: short the rumor and buy the news event. At worst, if a low wasn't put in yestrday I think we would see a retest of the lows or another low test those areas we showed.
Matt / Steve - Could
Posted by mitchell on 25th of Feb 2022 at 10:35 am
Matt / Steve - Could you comment if there are valid falling wedges forming on Daily/Weekly Index charts? If so, would like to hear your thoughts. Thanks.
I illustrated a potential wedge
Posted by steve on 25th of Feb 2022 at 10:43 am
I illustrated a potential wedge but nothing has formed as yet - just a "V" bounce unfolding
those call options purchased on
Posted by matt on 25th of Feb 2022 at 10:30 am
those call options purchased on Wednesday for the SPY systems for 28.75 - 29 (for the 2nd entry and for the QE 3.2) are trading at 35.7 now. the first entry options are still down some obviously, trading around 22 vs the 24 entry, but we have 3 times more of the options from Thursday that are up about 6 points from entry
CLEARLY how these close is what matters, that's just where they are at this time
Thanks Matt, This is very valuable
Posted by mundy on 24th of Feb 2022 at 10:50 pm
Thanks Matt,
This is very valuable
What are the last 2
Posted by watcdy on 24th of Feb 2022 at 05:05 pm
What are the last 2 columns on the mes trades please
DD L. DD $. ?
DD L, Draw Down L
Posted by matt on 24th of Feb 2022 at 08:27 pm
DD L, Draw Down L price (of the instrument) DD $ is Draw Down dollar amount
Thx so much
Posted by watcdy on 24th of Feb 2022 at 09:18 pm
Thx so much