The NFP is 142K vs 203K expected. How would the market interpret it? Lower number means likely no interest rate change. On the other hand it's an indication of weak economy. So far, futures market is down 1.5% before open. The lows of last two days are broken. We may test the weekly low of 1865 area with a gap at 1876. We may trade back to the lower balance area if we closed below 1880ish.
My plan is to collect some profit on the bear call side and may be add small size puts for IC or Strangle. I must keep enough dry powder before end of today for the weekend.
I am paper trading Straddles to see how it works in current market conditions.
Wow, what a swing day! Indices fall below last 2 days range after the poor NFP numbers. The next logic is to close last Tuesday's gap around 1875 for ES. Instead buyers stepped in to defend the top range of that Tuesday's high and started to push up. I kept looking for the "logic" places for bears to step in. It never happened in a meaningful way. All indices formed a bullish engulfing today. Bad news is good news again now. It's likely we will see a follow through on Monday.
I moved up couple of my short puts to collect more premiums and widen the spreads. Now I have incorporated Tyler's collecting more premiums into my practices. The key is be safe first. I sold more bear call spreads across my accounts. I didn't expect the market could turn up so much. It appears I was too early. However, I maintained my POTM rules and stayed above Sept FOMC highs. I will deal with my risk if this is a true turnaround.
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