The pop, dump and pop pattern played out on the 3rd day today. ES/SPX pop early in the session to break overnight high and closed the gap of August 21, the beginning of the big crash. The rejection after the gap closing was pretty swift, taking ES to its overnight low. Such round trip actions for the last three days may be indicating a tug war between short term bulls and bears. Bollinger band is squeezing tight also. Also the signs point to a near term break one way or another. My hope is to break it to the down size since market has not had any meaningful pull back and I am positioned heavy on the bear call side.
I had only one trade to close a bull put spread in ET. With such range bound actions theta continued to work in my favor. IB account's risk parameters improved somewhat. Margin ratio is up to 47 and leverage is down to 33. I am prepared to roll my SPX 2040 bear call spread by this Thursday unless we get a meaningful pull back in the next two days.
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