Middle Ground

The market has found a middle ground. At 1400, neither the Bears nor the Bulls can claim victory. Clearly, the trend is down. However, I am still trying to understand the pattern of S2 and S3 going forward. The volatility is enough to confuse things dramatically.

The question that I need to face is, do I want to trade with the trend? Or against it? Do I want to wait for opportunistic trades? At maxes or mins? Or go with the trend?

Psychologically, I always feel better fading moves. But I need to study what is the best approach in this market.

Suicide Watch

One day left before NFP Friday!

The market was on SUICIDE WATCH just on Monday. Now, its snapped back into the 1400 area.

My 1340 puts went against me pretty hard. I sold at an average of 5.5 pts, and it went out as high as 10. I was ready to sell more, but it rallied hard on Tuesday.

So now we have to sit around and wait for the outcome of NFP. People are still waiting for some sort of re-test of the lows. So, that is creating the bid. However, people may want to sell going into Friday, as the people are cautious about taking Asian hour exposure over the weekend.

I am waiting for the next set-up to trade into.