I didn't have any positions on EFA and With IV Rank at 47, I wanted to sell some premium. We are out of the ideal 45 days expiration window and since my portfolio theta is pretty low right now I decided to do laddered straddles.
Selling the 62 Straddle with 32 days to expiration and another one with 60 days to expiration. This will give us an avg date of ...
Updated with log-based fibs. White count is my basecase. Wave 2 got so deep I had to calculate sub-waves of white 3 to refine the targets (shown in green to match fibs). Nice reaction these past few days with extreme positive divergence on MACD, several timeframes.
Blue corrective count is still valid as well, so caution is warranted between ~61-65 region. ...
If you have ever spent more than a few hours in the Stocks and Indices chat room, you'll soon get the impression that the trading universe is seemingly made up primarily of E-Mini S&P Futures, SPX CFD's, and/or SPY (I probably exaggerate a touch, but that's the overall impression I get), along with a repeated frustration with the way the S&P is behaving in one way ...
EFA is literally out of room for presumed white wave 2. Blue b-wave can go lower in an expanded flat. The red count, my remote alternative, has increased in probability since EFA broke the 78.6% retrace.
Disclaimer, I'm entering long exposure in my LT account on market close today.
One of the other brutalized issues post-Brexit is EFA, which is basically "everyone" besides Canada and the U.S.
Here, the point at which I would consider a buy for my covered call portfolio is subject to change, depending on what happens at 51, which is the 50 Fib from the 2009 to the 2014 high. That would not be a bad buy area, but obviously lower is better ...
Obviously wave 2/b isn't complete. Here's one alternative way to count the drop. Below 52.91, the 78.6% retrace, the lower target box for a deeper wave 4 below Feb's low has much higher probability.
Disclaimer, I exited my short positions on this morning's weakness. No long-term positions, but I'm prepared to go long ONLY when the correction proves itself ...
Hi,
EFA ETF dropped in the last trading session. It could continue to go down for a lot of pips. So I would consider a buy opportunity in the dip if this will be possible.
I am a trader of http://profiting.me
Thank you
Girolamo Aloe
Added blue alternate 3-wave a-b-c count for wave 5, consistent with the possible Ending Diagonal as shown on the Weekly idea.
Specific Fibonacci target extension will be more accurate once wave 2/b completes, so I'll hold off on being too specific for now...
