Friday, October 23, 2015

Mo Money

China is getting into the money action.  This looks like classic Friday morning short panic on central bank goodies.  It is setting up the ES towards 2073 resistance, which is about SPX 2080.  Shorting the euphoric open today and looking to cover within the first hour of trade.

Today's intraday action looks very tradeable.  Short the open, buy the first 30 minute dip, cover and reverse long and sell the long at the close. However, in the coming weeks, the ES will be harder and harder to predict as the prices and number of bulls and bears are close to equilibrium now.  Bonds and other markets look dead as well.  Volatility will die out.  Opportunities will be scarce.  Its time to rest and relax from the constant action over the past 2 months.  I am considering taking a trading vacation after the Fed meeting next week.


Sam Kang said...

Long VXX 18 Nov 27 calls man @ 1.97. Looking for a move to 21.50 next week.

Hopefully crude or natgas keeps going lower. Those will be next on the list

Market Owl said...

Will be looking to buy bonds and/or short the S&P. Kind of leaning towards buying bonds rather than short S&P because of the strong Bund. Will think about it over the weekend.

Sam Kang said...

I see no edge in TLT right now.

Market Owl said...

Fed gonna be dovish again and bonds will rally from that, also if we pullback, bonds going up.