Wednesday, October 30, 2013

T.J. 10-30-13 FOMC

My plan of exit 1760 calls didn't work as it was faulty to begin with. I thought about to exit it at 1.5 to 2X loss yesterday and entering it at $11.50-12.50 it would have recovered better in math. There was no pull back at all  last night but touched a new high of 1773. ES opened testing o/n low and looked ready to go back up for a new high. I exited my 11.50 at 12.25 with fear of a new high. I had to exit my 3.25 position at 2X loss at 9.25 but it was when it fall back. After FOMC statement market struggled up and down to 1751 It finally went back to PP of 1760 and Fib 50 RT in today's range. I had one scalp for this week and one leg in for next week at 1705. It is only 50 point, 2.8% away from my entry and bit too close.  I will be ready to exit out and get in further OTM if it doesn't hold. The up trend is still intact so far and Fed is not going to taper for now.

Tomorrow may be a follow though down day. It's down this evening and could be a gap in the AM depending how the European market react to Fed's news. My down side levels are 1740, p-days low/Fib 23.6% RT and 1735, last balance area low and CLVN. The upper side levels are 1762 of PP and 1768 of a trend line and the last CHVN, 1770 would be a double top which may be a heavy resistance.

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