Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Those looking for a bottom have probably embraced the VIX exceeding 30 this morning. I'm not so sure. Where is it written that an unprecedented disaster isn't in the cards over the next month that pushes the VIX to 40? Or 50? Do you realize that ten years ago the VIX went over 60?
I watch the VIX just like anyone else, and it's not lost on me that the last time the VIX was over 30 was the July 15th bottom, but I don't worship it as the only thing to watch.
I rarely day-trade index options, but wow, this one was too easy to pass up.
Simply stated, the QQQQ was down hard before the open, but relatively speaking, not nearly as bad as the other indexes. The daily chart showed it was not going to break last week's lows. So the simple thing to do was to buy calls at the open (with a tight stop at the day's lows) and get out the moment it closed its gap. (See horizontal line)
I hope I didn't confuse people into think I had gone bulltard on them. It was a quick, easy profit, and I switched back to the dark side promptly. I have, in scientific terms, a buttload of Russell 2000 puts, re-acquired near today's highs (I dumped my original position immediately this morning at terrific prices).
Take careful note of behavior from last gap down! Pay close attention to intraday minute bar charts! No one knows how this day will end.
The QQQQ and IWM gaps are filled. RE-ENTERING INDEX SHORTS.
Way too busy to be posting charts. Get your own danged charts 🙂
