Santa's Bringing Coal - SPY Short / ES SignalingEntered into a short position today on SPY based off of a 4h signal on ES from ELMo (a strategy that I developed).
LHH (liquidity metric) daily is rapidly falling and 4h is low already. ELMo (entropy/momentum) daily is very extended and starting to level off, and 4h is already looking bearish coinciding with the short entry signal.
Looking for 4480 ES as a first stop checkin, then there's some volume hot spots around 4300 and 4150 if we really see some good volatility.
Most of my position has theta out to March/April, though I have a good sized set of puts for next Friday that I opened when SPY was at 450.
I'll either stop out at breakeven, or ride this down until ELMo starts telling me to close it out. I'll add more to the longer expiries if I get a daily short signal in the next few days.
Positions:
SPY 3/15/24 450P
SPY 11/24/23 450P
SPXS 4/19/24 15C
SPXS shares