As you might expect on a half-day following a major holiday, it isn’t exactly a riveting scenario for the trading day ahead. All the same, here we are, and let’s take a brief look at what’s happening pre-open.
The S&P 500 futures are up a tiny bit. They approached their recent high but failed to break out. At this point, the psychologically-important big round number 4000 is short-term support.
The /NQ is actually managing to be red as of this moment, and that red horizontal line is what I am watching.
The reason that red line means anything is that it represents the analog between present price activity and what happened in the middle of this summer. The setup remains for a rally to spring forth from this base, but a falling-away from the area I’ve highlighted would mean the follow-through isn’t going to happen. This should resolve no later than Monday.
One of the stronger markets right now is crude oil, but only because it is so low in its range.
My present positioning:
- 25 bearish positions;
- All of them long puts ranging from February to June expiratoins;
- Average intrinsic value 24.5% and average days-til-expiration 131
- 7.2% cash
Enjoy the 3.5 hours of trading today!
