Another expiration Friday, and we closed $SPX down. Is this the sign of the start of a down move that has been long in coming? Who the heck knows- well…except the rulers in the Eccles Building, and whomever they deign to tell. SO what to do for the rest of the day? Well, these are the levels in the /ES I am looking at.
$ES_F today:
- Looking down: if 2128.50 is broken, should be down
gap at 2123.25 good reversal point if drop at open
2118 important support for bull case - Looking up: if 2128.50 remains, good upside potential
gap at 2137
shelf at 2138.50
shelf at 2141.25
- Up target is 2155 where the island formed between 10/7-10/11 resides
- Another trade I am working is selling a couple of puts in the $ES_F for expiry in week three- 28 days until expiration, around the 2020 option. I will take it off at 50% profit, it that happens.
What else is going on? We are fighting the down move in the $ES_F futures right now, but that is nothing new. We have been having a frustrating, schizoid market the last couple of days with big drops, lots of sideways chop, and big pops. I lost money- I admit it. I got whirled up in the blender. But I am woman enough to put on my big girl pants, and dive back in today. I think.
What I would like to see is the ES retest the low around 2107.50. I have been holding shorts for a while now, as a core position, waiting for that number to hit. Of course, there are a lot of things I want, not the least is for this to happen, and yes, I remain disappointed, all the while still wearing my big girl pants.
It’s been a tough week and I can sense the exhaustion amongst a lot of traders. Unfortunately there’s really nothing to do but remain patient and vigilant. We have had basically a year long sideways market with a quick downside correction mid year. You know this can change in an instant. So, I want to stay nimble and emotionally balanced so that when an entry opportunity presents itself, I am alert and emotionally ready to pounce.
Happy trading- and drink a lot this weekend. I will.
-Viola V.
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