The_Unwind

S+P Futures.. "Melt Up " Possibility

CME_MINI:ESZ2019   S&P 500 E-MINI FUTURES (DEC 2019)
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S+P Futures are working on a complex bottom formation above 3070,
that could ultimately cause a "melt up" above 3100.

The current move down from the all time high of 3097.50 on 11/7 is "corrective" to my eye

No surprise here here ....
that the current small pullback is being accumulated by bullish traders with an "urgency" to get in,
who want lower prices for an entry point.

Bearish traders who think we may be topping here
are failing to recognize the potential for a "melt up" in price
,.. at any moment.
This continues to be a market you do not want to short right now

Rather wait ! ,, until real support is busted.
Then go in ,..with all you got.

THE_UNWIND
11/8/19
NEW YORK




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nice work
Reply
The_Unwind Yuriy_Bishko
@Yuriy_Bishko,

Thank you very much
Reply
Too late for me my friend~ I am accumulating shorts however and made a bundle selling puts. Ty for post! Agree any pullback here is setup for bounce, melt-up is a real possible.
Reply
The_Unwind DaddySawbucks
@DaddySawbucks,

Selling puts and calls, if you know what you.re doing,
is one of the best ways to create a constant income stream,
while potentially capping your loss.
Market is very tricky right now.
Reply
@The_Unwind, It defrays my drawdown when I short too early. I took some pretty big chances on selling credit spreads in past, I don't do that much now.
If we get to 3124 I'll sell SPY Dec 325 calls spread against 330s for a $5 credit spread. The trouble with these spreads is, your short calls can easily get into the money and cause you real grief, while the short leg of the spread doesn't really help b/c typically these are penny contracts that simply dwindle to nothing. The purpose of it is to reduce margin requirement and cap losses at less than infinity, lol. It really hurts badly when those rascals get ITM!

I never sell puts on credit, market takes the elevator going down and you never know when it leaves. Damned scary!
I do short naked puts on stock I'd like to own, a cash covered short.
+1 Reply
LoLBeach The_Unwind
@The_Unwind, i really start going there... sooner rather than later. appreciated for everything i have learned from you dear sir !
Reply
The_Unwind LoLBeach
@LoLBeach,

That's very kind of you to say.I'm touched. Thank you..
Reply
LoLBeach The_Unwind
@The_Unwind, not many teachers left in the world...
Reply
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