It was a gap up day following last Friday's reversal. SPX/ES are back into the balance area of FOMC and closed the gap. The short squeeze was pretty hard and indices are at some important levels. ES touched Fib 78.6% on daily from FOMC high and crossed 50% RT from the broken down on weekly. RUT is right at Fib 50% RT on daily from FOMC and 50% on weekly from the broken down week. We may see some selling pressure at these levels near term. I think there is a good chance that the bottom is in technically speaking. The immediate risk for me is a melt up. I sold more calls last week. Some of them are underwater now. I will continue to monitor my risk perimeters and try to collect more cash while rolling away from current positions.
I tried to roll up some puts to get more premiums but only one for this week got filled. Sold couple more bear call spreads for RUT since it's the weaker one and was up 2.4% today. I am too heavy one call side now. I will try to reduce some tomorrow.
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