……But Then It May Go Higher
Good morning everyone, here is the updated DAILY HEAT MAP for probability of reversal for SPX,NDX and RUT indices, after yesterday’s DAILY Close: all the 3 indices are short-term overbought according to my statistical pattern trend model. They can certainly go higher, but one can start to try short trades from here.
I am a big fan of Vertical Spreads (BearCALLs, BullPUTs) because you can enter the trade exactly at the close, and that goes hand-in-hand with my time model (consecutive closes in one direction), and as long as the next close is 0.01 point away from your Strike, you will profit.
So with Vert.Spreads Options you do not need to predict the extension of the price move, it simplifies your forecast, it makes it more “robust” because you have one less variable to consider (i.e. no price variable).
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