This is an amazing candlestick pattern, plus I think the financials are doomed. Let's just say I found something to do with that extra cash laying around. I'm getting a quarter million bucks worth of this stuff right now.
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Reversing E-Mini
I have sold my NQ at a fantastic profit and am going long the ES based on its descent to its support level. I am keeping my near 100 short positions open basically "forever" (tightening stops from time to time), but as for intraday, this is what I'm doing………..
UPDATE: Ummm, I decided not to do this after all, since the market resumed its break so fast. Thank God.
Buying Puts Instead
Because of the volatility, high premiums, and huge bid/ask spreads, I've completely shied away from options trading lately. I've got 84 straight-up short positions right now, and a mere one option (on OIH, a very large position).
There are a handful of stocks which didn't have any inventory to short, so I'm forced to buy puts on them. I'm going to get them deep in the money and several months out, since effectively I just want to be short them without getting reamed on the options. Here are the underlying stocks and the contingent price I'll be putting on them:
AYI 38.63
AEP 33.57
AMT 35.93
ADSK 29.23
BBD 15.01
RATE 36.60
BDX 77.45
CEDC 42.78
GWW 86.75
NBL 48.63
PTNR 20.10
WOOF 26.55
Look Familiar?
I was very pleased with my short position on /ES this morning. The economic reports released at 8:30 EST amplified an already profitable position. I had also entered an /NQ short based on this intraday graph.
I am counting on behavior similar to yesterday; that is, a falling away from the cluster of activity mashed up beneath the retracement line.
I have a question for you out there who have more experience than I do trading e-mini futures (and by "experience", I am talking about the past few days, which is all there is under my belt). Why would anyone choose to buy index puts when selling e-minis is possible? In other words, with puts, I am getting:
- A relatively thin market
- A giant bid/ask spread
- Decaying time premium
Whereas with futures the only negative I can deduce is a large commission (like $350 instead of $30) and the high degree of leverage (which is obviously a two edged sword; I can make a lot or lose a lot very easily). Thoughts?
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