Scalped some SPX calls on the 373 break for a nice quick win at the open.
Holding all cash heading into tomorrow.
Futures gapped up and we held the gap all day. A lot of chop all day and we honored the 373 and 377 levels well.
All the gains were mostly in futures so overall a pretty boring regular market session.
Oil started to move upward again. Keep an eye on this...
What to Expect?
No major fed data events until PMI on Thursday.
Wed - JPow testifies to the Senate banking committee at 9:30. Bullard talks at 12:50.
Thurs - JPow testifies the House Financial Committee at 10am.
Fri - Bullard speaks at 7:30am. Daly talks at 4pm.
What Do I Think?
Technicals - We are not oversold on any major charts. We are in no man's land. So it is time to keep an eye on Levels and Fibs.
As long as JPow keeps a hawkish tone, the market should stay strong. If he starts to sound dovish, the market will get spooked again that he is not serious about inflation and will sell off.
We have a gap to fill up to 380 on SPY. It looks like we may test that level soon.
After JPow's testimony, I do expect us to start to grind a bit. So I am looking possible swing positions with these options. It will just be too difficult to get to the levels on the chart in one session. I will start to be a little more loose with my plays to allow them to play out over the course of a few days.
THE PLAY OF THE DAY
I will be on the sidelines until JPow gets about 50% done with his hearing. So that will take me out for the first half of the day.
If we retest 373, I will keep an eye on how it reacts to it. I am still bullish until 380 is met, so I will most likely play calls if 373 holds.
If we break under 370, and it is because JPow moved us there, I will be playing puts as we should slowly bleed out.
As always all of this is my opinion and not financial advice.