US indices continued moving higher into Monday's gap zone overnight. It tested the gap this morning during ECB's conference but was quickly pushed back. VX dropped below 25 overnight as well. My theses are 1, trade is to position in a neutral area such as ES 1970s before NFP tomorrow morning. 2, close both gaps above and below, then park in 1950s of CLVA.
My plan is to continue deleveraging. 1. rollover with less contracts but still try to collect some premium. 2. close all RUT expiring positions today. 3. working on to close my SPX tomorrow's expiring positions. Set orders to close them today or tomorrow.
Keep calm and carry on.
Well, the day of rally failed after closing the gap above. ES fall back to close the gap below as well. It was a rare day which ES break both sides of IB. My theses two was played out. But ES closed slightly below 50.
I moved couple Sept 11 SPX 1910 down. My 3:2 swap didn't get executed despite of passed price actions. None of my RUT positions were filled even the expiring 1100. RUT is closed at 1145. The probability of 4% drop at open is low unless the NFP report is really bad or good. I also converted a bull put to a bear put for 9-11, 1910 which is my highest put position. I have to figure out a way to work on the same position in ET that could not be break off as naked.
Tomorrow's NFP is critical. Since the sentiment is pretty bearish it is likely ES will retest the recent low of 1900. My positions are still fragile. Margin is at only 32K and leverage is 1.3. I will try to rollover more positions. I will start before 8:30 to watch the NFP report reactions and prepare for a bad open.
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