I’m still on the sidelines and checking charts 1-2x per week just for an idea of what’s going on out there. Back in March I had a nice short trade from 1290 and was looking for an exit around 1240 and again at 1230ish. I got caught with the hook in my mouth and let nice profits slide away by missing my first exit by a few points. Now, I see another potential opportunity to the short side and that same 1250 level that provided a pivot then now looks like a target:
The last 2 summers linger in my mind and the market is once again entering that seasonal ‘sell in May and go away’ hurdle. Furthermore, declining PPO’s are also back in play. It looks like the only thing standing in my way of nice profits is my usual challenge of no intraday access to tweak stops as price action goes my way. I would like the sanity of entering under the 10WEMA and simultaneously entering a stop above it; not coming home to find I was triggered below it just before the market punked me by charging back over it. I loathe starting a position on the wrong side and especially when so much damage can be done on an intraday basis.
TICK 3Dema has room to give and I figure $SPX 1295-1300 would be the place where $TICK would once again be poised to spoil the downward momentum. Fail 1295 and a mere 20+ handle trade could easily become a 70 handle trade:
My target on ANY SPY option trade has been 40+ handles and another set-up appears to be very close. I need to trade this -40 move much more adroitly than I did the last one!
