The Key To My Bias

1452.06 was never reached yesterday. And so around 1447 I started hedging. It took a few tries as it often does, but I left the day with 145 puts against 144 calls at a 1:3 delta -- still an upside bias.

Futures are down overnight, and today could get messy below 1438.28. That could call for new lows below 1430.53. If not, 1452.06 could fail and a test of the 1458 area could ensue.

1452.06 is the key to my near-term bias. It's the dividing line between a possible impulse and a correction. Potential action like this is why hedging is a big part of what I do. It's also fun.

I don't quote, trade, or pass on rumors, but there is a lot of chatter about Spain today from someone on my stream who usually has great information from working so close to the CME. Rumor or not, there could be volatility.