Market opened higher this morning. My expectation was that ES might retest 50MA and last swing high of 1667. People would be better wait for Mr. Obama's speech regarding Syria tomorrow. It acted that way until the news of that Russian proposed having Syria's chemical weapon under international's control. Then market sentiment changed to a more bullish one. ES ended at 1671 firmly above 50MA and Fib 62RT. It positioned ready to take the gap zone tomorrow, or may be even a gap cross the gap? However, ES is at top of narrow BB. The bigger picture looks like a huge head and shoulder pattern. It could be a fake break out as it has happened many times before. Also it may go up there to close the gap at 1680. Bears then will be comfortably start selling again.
I entered several call sells based on my early hypothesis. It appears I was bit too early and weighted more on the bearish side than I should. I have more call sells than put sells right now. Get to remember that selling calls is riskier than selling puts. I have lost a lot more in selling calls. I need to work on reduce call side risk tomorrow.
I have two SPY weekly puts based on 50ma and Fib 62 today. Didn't think of using a spread to reduce my risk.
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