Viewed with blinders, it’s a delight to see the /ES down 55, the /NQ down hundreds, and every single bearish position I’ve got ready to fall at the opening bell. However, we all need to remain cognizant of the game of jump rope the market has been playing for a solid two weeks now, as viewed by way of the /ES futures.
The /NQ isn’t much better. Each day is alternately disappointing and exhilirating.
Curiously, while the /VX normally grinds its way down to 15 or so, this time it seems to have hung out in the 19s for a little while and is starting to strengthen again. I cannot help but wonder (and hope) if this is the only diminishment in volatility we’re going to have.
Even though we’re far from normal earnings season, there were some big reports last night. FDX, for example, got massacred, and Micron (MU) shown below experienced a massive jolt higher before completing puking. This gets a big thumbs up from me, since I acquired SMH puts yesterday.
Regarding SMH (semiconductors) itself, this looks like toast to my eyes.
I’ve got 16 bearish positions across the board (13 puts, 3 shorts) and might get more aggressive today. This is a challenging market, but never boring!
