I had to step out early today, so I missed most of the afternoon trade. The first order of business was to successfully leg out of the other side of my hedge from last Friday. The SDS scored well this week, and all I needed for the option side was for the SPY calls to get back to even, which they did. I left a little on the table, but so what. They barely move. The short side made it worthwhile.
If you saw my tweets today (I don't ordinarily write intraday blog posts concerning market action, and use tweets instead), I mentioned the possibility of a triangle forming from the highs, which would imply some sideways action and then a thrust to new highs. I said volume was the key. Well, it didn't exactly wow me. I'm more apt to consider today's action as a bit of euphoria based on GM as well as a set up for tomorrow's option expiration. There is usually a bullish bias before op-ex Friday, and I believe we witnessed that today.
Let's see what the Friday session brings. Another couple of days higher, and I'll start leaning towards the triangle scenario. Barring that, we could be gearing up for a test of the 1150 area.
No comments:
Post a Comment