Scalped some SPY puts very early in the day for a small profit. And then I was waiting for the drop to 373, and got trigger happy and entered calls on the 375 test. I rode it all the way down to 373 and back up to 376 for a small profit. This was a misplay on my part, and I was fortunate to get some profit out of it.
Holding all cash heading into tomorrow.
Futures gapped up and it was trying to clear 378 level in premarket. SPY struggled to clear that level early on and got rejected right near it.
JPow had a hearing with the House at 10am and about halfway through, the market started turning downward. The questions were much more tougher in this hearing and JPow was struggling with them at times. Once he was done with the hearing, we started diving to 373 and got a nice technical bounce all the way to 377.
We then got some odd oil news about a flare up at a Marathon 66 refinery. Not sure why, but this sent oil way up and in turn pushed SPY over 378.
What to Expect?
Bullard speaks at 7:30am
UofM Consumer Sentiment and inflation data in the morning at 10am.
Fed Speaker Daly speaks at 4pm
What Do I Think?
Technicals - We are not oversold on any major charts. Again, we are still in no man's land. So it is time to keep an eye on Levels and Fibs (yes, I mentioned Fibs again for you guys in the discord).
We still have a gap to fill up to 380 on SPY. It has been teasing getting to this level for the last few days. We are so close.
Until we break out of this 373 to 380 range, I am not sure why else I would change my strategy.
THE PLAY OF THE DAY
This is a repeat of the same strategy I have used all week.
If we retest 373, I will keep an eye on how it reacts to it. If it holds, I am in calls for a few points.
If we test 380, I will be buying puts if it is rejected.
If we break under 370, I will be playing puts as we should slowly bleed out.
As always all of this is my opinion and not financial advice.