Levels Of Bear Fatigue

I've been keeping an eye on the 1337.35 lows of last Friday. The equivalent futures price is 1333.75 on the e-mini. I notice that the futures had a rough night after what was probably a short squeeze at the close. I also notice that 1333.75 was not broken. So it seems the market agrees with crude technical analysis. Which is nice.

I will not castigate myself for owning puts at pretty much the top tick of the market yesterday and selling them soon after because I wanted to eat a stress-free lunch, except to repeat what I said on Twitter, which was that it was probably not the first time that food has clouded my judgement. It won't be the last, either. I'm certain.

No, for me, the real work wasn't going to start until the S&P took out 1337.35. In fact, it already started to show some bear fatigue yesterday. So yet again, I'm on guard for a bear trap. Anything over 1349.61 will seal their fate once more for at least another few days.

Make no mistake, I'm still a bear at my core until the average S&P dividend yield is over 10%, in line with true, multi-year, bear market lows. But I'm a trader, and my job is to make money in all markets, sane or otherwise.

If I see any more "bear fatigue" today I will be use SPY 134 calls and maybe even OEX 610 calls to take advantage of it.