Here we go first trading day of July, no post yesterday I left “work” early. I made too much money for one day and my rule is when I get green, I get gone. Anyway looks like we may get a gap up this morning that is very interesting.
Here is simple chart of the S + P daily as you can see yesterday the bears defended that 930 area with a sharp sell off. But those crazy bulls defended that 910 area pretty well with a low of the day at 912. Here’s the deal if we gap up and break the 930 area I may try to take a long position with a target of approx 966 – 970. However there is so many bearish divergenses playing out right now it would be a risky long. I will look at the tape and the market internals if they are strong enough and we decisively break above 930 I’ll try it otherwise I might play the short side at 930 again since that played out so beautifully for me yesterday.
Side note, the VIX has broken some long term trendlines and it is looking very bullish at the moment. I will try to post a chart sometime this weekend. As this could have serious implications on the market. For now if you are trading this market I can not stress enough to keep your position sizes SMALL, until we get a confirmed trend up or down this whipsaw action will kill a trader’s account! So be careful and good luck, will be in the trading room again, posts will be limited. Will try to post my trades ASAP though.