the conditions have met for me to take a option spread short, I can do this with debit put spreads or credit long spreads or a combination of both. using both will reduce cost.
The key is at this point keep risk well in control.
from a long time back published these megaphone patterns, we are now moving all the indices into the expanding top. Have been leaning long most day trades but now as we get to the two topping areas if market shows weakness will go short.
There is a down channel that now has just brought us back into a very big up trend.
Today will be looking to see what the market is going to do in relation to last week.
Last week we had negative month, negative week and negative day after day.
Today has anything changed? Only thing i have to ask my self.
Just noticed this so had to share it. Does not mean much till we get there and see if the market is respecting that or continues down. All i do all day is collect data points, then let the market tell me it cares about my data.
Market is in a very big sideways range and then over the last 3 weeks has been engulfing each prior week. The trade to me is back inside the expanding range. Keep an eye on very big picture weekly, Monthly to see if overall sideways trend changes.
outside the daily action a bigger trend should develop.
Below today's large down move is a high volume target. Then just below that is a low volume area, know for fast travel.
I will be watching how the market opens, and if moves more down and gets into the low volume you could see 380.
Today got very sold and may see some dip buyers but will wait for morning to set stage for next few days.
Yesterday almost stayed inside mentioned range.
It did provide some excess so yesterday could be a temporary low.
End of day had large amount of stocks moving up.
I will still be watching same range as yesterday, but looking for a bit higher high and or a bit lower low. This will be driven by the spots outside yesterdays range. Only thing on chart that is changed...
I am focusing on lower or higher highs. My bias for entry is bullish. Entry means new shorter term trades will be long. Will be longing for a lower high. If the market does not come as a lower high then focus on higher high and remain Bullish.
When we roll over to the short side I then will trade short and look if we get lower lows or higher lows.
If the S&P 500 can get above 3966 on the ES then the 4000 area on the day is my upper target. Do not think this is a likely break but just in case.
For teh short side looking a using the overnight low as support.
Today gives me some info. so will be looking to how the market acts from here.Does it take out yesterdays high or low. And at that time does the internal action of the S&P agree. When these two events happen either long or short I will them be entering my trade.
the two line are marking the inside of the 15 minute as it was at time of posting. If this remains the same the following candles will look for a trade from the action outside this range. I personally would like long better, staying in the range. This said short momentum is there.
This is the retrace i was looking for, and has returned the market right back to the prior double boxed area on chart. would expect we test the bottom of the box. That is the level will have the radar on full alert. ES 4088 is the zone i see possible support.
Today will look to take advantage of the weakness but do think a chop or small retrace back up to 4170 area.
Last week posted this box, we now have reached the top of the upper box. 1 of 2 things are about to happen but both have potential to provide some market resistance. 1 is the box top, the other is an stop sweep over prior levels.
I will be forming a trade from the action not the lines.
Today an inside day trading inside first hour. will take a trade either direction looking for a break of yesterday. If that break does not happen or we go back to middle i will exit trade. So up or down works for me.
This is not the long term trade I am looking for but could evolve into that trade.
I have put a box around the areas of interest to me. Also have put areas of target that could easily be stops waiting to be hunted up. We are currently in the gravity of a 6 day market orbit. 100% expect a break out, but until we do trading outside to the inside but expect each swing to get wider. So this could start to feel very trappy.