Jan 24. All we have managed to do in spite of two days of 70pts swing is to trade approx 20 points above and below the 35 area. It appears that a move out of this area is coming and my bias is to the upside. As long as the 30 area holds, I do see the 66-68 area reached. Given that any news can be used for or against an idea, I understand there is a vote in the senate today regarding Govt shutdown. I do not know if voting has begun or perhaps finished. That might be a game changer. For now, lets just say that above 41 or so could be bullish and below 30 bearish . Between those two areas, you are likely to get chopped.
Comment:
We continue to trade between 2677-2613 area. Clearly some form of time correction given that it was fast and furious to the upside. IF you own options, this is definitely a theta burner. WE hit the upside target at 68 and rolled from there. I expected on friday that we would get a gap fill but we did not instead. today we opened below Thursday''close. There was just no buying today and the -ve delta showed through in the character of the trade.. For now IF we go below 34 then perhaps we get to the 2609(2612) . If we can stay above the 35-36 area then it is likely we head on to 56-59 before heading back down to 2609 or lower.Just one thing to note is the possibility of failure around the 48-50 area. Today's trade (including the overnight session) was the mirror opposite of Friday. I am staying away from this till I can find a better entry either above or below. GL