Arik,
Remarkable call on selling puts near the open and re-buying at 11am. How much is a subscription to your services? ;o)
I'm getting pretty strong confirmation now that the dip we were in today was indeed b of 2 of 3 of 1 of A, and that we are now in the c of 2 rally. I had it scheduled to begin at 1:30am tonight on globex, and sure enough, S&P's were down around 977 at that time, and at this writing, they are up to 990 (nice little 1 of c rally!!).
I believe tomorrow (Friday)will be an up day, with potential for a 2 of c pullback to the 1077-1082 SPX area. My strategy today was to buy Sept. calls on the dips to hedge my large Oct. put portfolio. I believe this strategy will work again tomorrow, and I may buy more calls on the dip to the 1080SPX area, and sell them on the close. My cycle duration analysis calls for this c wave up to conclude in globex trading before Tuesday's session (around 4:30 am Tuesday).
The active pattern I saw form in today's trading was an ascending triangle. A break to the upside of the 990 area will target 1001 and 1013 respectively. I believe they will go with the latter target, so that Wednesday's high will be slightly exceeded, and a large short "stop-out" will occur. I plan to be unloading calls I bought today up in that area sometime Tuesday a.m., when we're getting our 2 of 1 of 3 of 1 of A rally, and purchasing Sept. O.T.M. puts. Sept O.T.M. puts should get slammed between today's (Thursday's) close and then.
Please keep those option timing recommendations coming (at least until the crash phase begins). I'd like to cross check with my timetable.
Regards,
David |
