Hello Traders,
Question of the day, purchase put options on bank stocks and if so to do it thru the $XLF or their % largest holding: $JPM ?
Or to sit put on my long U.S. Treasury Bond positions since buying puts will most likely just double risk exposure due to the relation between interest rates and banks... hmmm. I tend to lean on trading around the bond position.
Anyhow, we have some action now in this market after some serious topping distribution between $85 - $88. This is clearly a incredibly crowded trade with a bullish bias and now it seems the euphoria is unraveling. By the way, treasury bond shorts are insanely crowded also.
Back to the technicals, as you can see price broke support with strong volume to support the move. If your not in a short position already then my best advise would be to monitor the intraday price action for a pullback to enter short tomorrow. Or simply take the aggressive side and short at the open. Whichever plan you choose make sure it fits your trading plan and execute once it meets the criteria.
I also marked out areas of support to cover shorts or for dip buying opportunities.
Cheers guys, hope you found this helpful. =)
Question of the day, purchase put options on bank stocks and if so to do it thru the $XLF or their % largest holding: $JPM ?
Or to sit put on my long U.S. Treasury Bond positions since buying puts will most likely just double risk exposure due to the relation between interest rates and banks... hmmm. I tend to lean on trading around the bond position.
Anyhow, we have some action now in this market after some serious topping distribution between $85 - $88. This is clearly a incredibly crowded trade with a bullish bias and now it seems the euphoria is unraveling. By the way, treasury bond shorts are insanely crowded also.
Back to the technicals, as you can see price broke support with strong volume to support the move. If your not in a short position already then my best advise would be to monitor the intraday price action for a pullback to enter short tomorrow. Or simply take the aggressive side and short at the open. Whichever plan you choose make sure it fits your trading plan and execute once it meets the criteria.
I also marked out areas of support to cover shorts or for dip buying opportunities.
Cheers guys, hope you found this helpful. =)
Comment:
Bank stocks are trending lower in today's trade. $JPM is holding on by a thread, if it breaks yesterday's low expect to see $XLF trade lower since J.P. Morgan is their largest holding.