Up in the morning and down at close. Picture perfect money making scenario. It failed the pivot 618 and shorted to s1 612 and below. A piece of cake. Now it closed below s1. No matter what others are saying and hoping, below 615, it is down trend. Monday's numbers are 617, 613 and 607. This is getting closer to the fib target of 600. Next week is ISM data which will be bad and if recession is confirmed, getting to the target will be accelerated. In order for the market to reverse again it has to overcome 613, 617 and 620. Will print weekend updates when more time is available later.
Good luck folks
2c
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4 comments:
2cents, how much money can one make trading oex options. For e.g. when you shorted at 618 and covered at 612 today what is the cost and profit on 1 contract.
I trade SPY options and OEX is new to me and I have followed this blog for a while since your days in _inx board at CS, and am interested in your technique.
One more thing, on your "if recession is confirmed" quotes..
This market is in denial and will remain in denial until we print an actual negative GDP.
Probably when oil, commodities will tank hard.
Hi Elam,
Thanks for your support. I sometimes do take a peek at CS _INX board and I find them way overtrade and commit the no-no for hedging. It is a very bad idea and is the quickest way to bankruptcy.
OK I find DIA, SPY options not moving fast enough for me. Take your example from 618 to 612 is 6 points and you can count on 50cents for every point, that is 300 dollars for one contract. This is not bad for a trade. This will apply for approximately 20 points out of the money. If it is too far out then the rule does not apply. The cost will depend on how far out of the money...from approx 15 to 9 dollars as of today. Next day will be different because of erosion of time premium.
You are right on market is in denial....Gold is already retreating.....
2c
Elam,
I meant to say 15 to 9 hundred dollars. missed out the hundred...
2c
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