Kumowizard
Short

2170 resistance halts short squeeze. Momentum loss

FX:SPX500   S&P 500 index of US listed shares
345 6 9
I think that's it for now. Key resistance marked by Chikou Span peaks and lows at 2170 stopped the amazing post Trump short squeeze. Heikin-Ashi started to signal consolidation. Not yeat bearish , BUT if you look at Nasdaq ($NQ), you will soon understand why it is better to get out of longs, or maybe stay even short already! You can go and check my recent Tweets.
A retracement to 2110-20 can quickly happen any time.
Stay cautious, as volatility will stay high!

Bearish Options trade idea:

Long Put 2120
Short Put 2045
Short Call 2195
Long Call 2210 (protection)

Maturity: 16/Dec/2016 (35 days)
Ratio 1:1 all.

I traded this combo paying net 8 points. Max loss is 15+8 = 23 points if at maturity market is above 2210. Max possible gain is 75 - 8 = 67 points. Max Risk/Reward: 2,91
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Kumowizard PRO Kumowizard
@Kumowizard, Finally with some patience I made it at 7,5 points net.
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thanks for your idea! since the result of election was clear, I just guess NASDAQ would suffer more stress than the SP500, so it seems NASDAQ will be better target to short, but if someone would like to long the equity, maybe SP500 or DOW are the better choices. but the direction of all Equity market is still not vague to me. I just doubt if the market could afford the steeper yield curve of USD.
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Roach Roach
@Roach, still vague
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generally what does it mean while dow makes a new all time high, but sp500 and nasdaq can not ? it seems there is a divergence .. signalling something ?
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@ahmetnmsl, different indexes. DJIA is consisted of the 30 biggest US industrial companies. SP500 is more diversified, as that contains several sectors, and 500 biggest US shares. Nasdaq100 contains 100 companies, considered as a technology index. (tech and biotech companies mainly)

So when there is heavy sector rotation, SP500 and Nas100 can diverge.
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