Indices made an unexpected pull back today and closed yesterday's gap. It looks like a rejection of their previous balance area. Or bulls may give it another try to break the resistances. I should watch if there is a follow through to the down side tomorrow. Prices are closed in the mid of B band and MACDs are flat on daily as well. I need to hold off my fire to see the directions of the market after today's put selling.
Made 6 trades today. Sold 3 early Dec puts CS in SPX and RUT. I was assuming that recent daily pattern of early drop and late pop would be in play. But they closed on the lower side. It could be the start of a new pattern. Wait to see! I made a new trade in XBI, biotech ETF as part of my diversification experiment. It was a Dec 3 strangle with 0.6 Delta and near 40 IV. I still couldn't get into TLT and GLD for other type of asset classes.
Risk profile is in good shape for now. Margin ratio is at 71% and VAR is 25K. The current chart pattern is similar to last Aug and worrisome. Chinese Yuan devalued more than last Aug which was the trigger of sell off last year. Just be mindful about it.
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