Indices opened gap down on Sunday night. ES recovered overnight after European open. It left a small gap below. ES now has gaps below and above. It may go either way to close a gap today in a choppy session. ES 's head and shoulder pattern is still in place. RUT may be forming its right shoulder now. Overall the market is still in bearish patterns. VX is pulling back at Fib 38% and next target will be 50% at 21.5 area.
My plan is to sell more calls today mainly with CS to reserve my buying power and keep leverage low.
It was a choppy day indeed. ES broke out to the upside in AM, It got knocked down less than half way to the gap above. It than closed the gap below and buyer stepped in. It closed inside Friday's range. I didn't have any trade except an error entry. I forgot to put in - sign again on a call spread in SPX. I placed an order to exit it with a little profit. The down trend is still intact. SPX and RUT weekly MACD are improving but not above 1. I spent a lot of time reading Tyler's post explaining his style of trading in Skype. It make sense to be heavy on the call side since market doesn't crush up like crush down. However I don't like constantly dealing with positions in the money. I will incorporate his approach into my style slowly to reduce my risk.
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