The collision of global markets and social mood

Thursday, August 4, 2011

Be The Tuna

Yesterday's quick trip to the 1234 area on the S&P cash was not expected, but not unexpected either. It provided me a good spot not to speculate, but to trade.

I kept my head down and focused. No Twitter. No distractions. Ended up having a decent day, making up more than the total loss on the SPY calls.

I added more SDS in the morning (would have rather been short e-minis), I went long e-mini futures at several spots in the 1230s, took a bit of heat, then scaled out and rode a nice position back up to 1248. The SDS was dumped soon after the turn for a slight profit. It just felt like a bit of insurance in case I was wrong.

Later I shorted twice, most notably at the end of day at the overnight high of 1257.75. A huge burst of stops went off there (sardines). You could tell they were being hunted (by tuna). Of course by this morning, I wish I'd held. But I wasn't being greedy. By the cash close yesterday, the S&P had traced out a gorgeous bottoming candle indicating possible upside follow through. I took a quick 5 points and called it a day.

Overall, this is a great trading environment with a huge range. Above is the 200 day moving average at 1286 and below is the November high of 1227. Juicy.

Futures are all over the place this morning. They tested 1264.25 and so far 1236. A ton of money has been made and lost and still more has been wagered. Play the extremes. Be the tuna.

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