Thursday, February 11, 2016

Feb 11 - Long SPY/ XIV

Will wait for tomorrow to see if we get confirmation to add to position but we 'may' be building a short term bottom here.  If we don't move up tomorrow, I will exit quickly.  If buying looking strong I will add longs.

If we are indeed basing and looking for an intermediate term bottom, we should see buying to be obvious in next 1-3 days.  Like rocket blasting off obvious with a large daily candle, not just a big gap up.  If not, we probably don't have a floor.

VIX in the first resistance zone and printing a reversal candle.  The only drawback is oscillators aren't maxed out which does give me some pause.

$VXO looks more promising as a reversal set up

SPY potentially bottoming but needs confirmation
 Nice set up with positive divergence in past week plus double bottom.  Almost looks too good to be true but I have taken a stab.
 This set up in $NYA looks almost too easy which makes me somewhat suspicious that we will fall through support.

No comments:

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...