Wednesday, September 30, 2015

Sept 30 - Setting up for the final flush out

There is a lot of background noise here because of end of quarter and the big portfolios might be doing a lot of reshuffling that could make reading today less than a clear picture.  That said, I was unimpressed by the bounce (volume, IWM barely moving, VIX stubbornly not dropping as much as it would on such a big gap up) and reloaded the QQQ puts expiring end of next week when it hit the upper trendline on the 10 min chart.

I am guessing we are heading into the last flush out in the next few days, maybe into early next week.  We already have buy signals and very clear positive divergences developing on multiple daily charts so if and when this flush happens the reaction will be fierce.  If the market makes a strong dip, I will start scaling into some intermediate term long positions.

Still working under the assumption this downward channel is intact.

Oversold conditions worked off on hourly

We have a buy signal but going to wait for positive divergence btw price and the indicators to go long.  I think we are very close.

This was a bit of a surprise.  VIX is really hanging in there and printing a reversal candle.

IWM barely moving so it casts more doubt on the strength of today's move.


Doug said...
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Doug said...
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May 15 - Closed out IWM puts for +120% and picked up DAL and HD Jun calls

I'm going to let the market do its thing this week and probably stay away from new positions until Friday unless something very good pop...