Good morning! Well, the last 4 days we've been in a high base and futures are currently trading lower around 3925ish. Still somewhat basing. Or is it turning over? It already touched the 200 day so now we gotta see if the bulls have any more in them to pierce through it. And that could happen. Last week I had mentioned that the markets like a divided congress. GOP took control of the house. Not by much, but just enough. This could give the markets a reason to celebrate in the short term and could cause the market to pierce through to 4100. That would be like an exhaustion finish or max pain for the bears. With the way these markets have been acting this year, I wouldn't be surprised if that happened. Just remember, we are in a bear market.
Plan for today: I entered in a low risk diagonal call spread on Tuesday with the anticipation that we would run to 4100 by EOW. If the markets turn over, I'll just let that expire worthless and enter in a short position. Ideally, I wanna see this run to 4100 and then get short. So, I'll just have to wait and see the price action these next two days. Be patient, stay disciplined, control your emotions, trade the market in front of you. Happy Trading!
Plan for today: I entered in a low risk diagonal call spread on Tuesday with the anticipation that we would run to 4100 by EOW. If the markets turn over, I'll just let that expire worthless and enter in a short position. Ideally, I wanna see this run to 4100 and then get short. So, I'll just have to wait and see the price action these next two days. Be patient, stay disciplined, control your emotions, trade the market in front of you. Happy Trading!