Thursday, December 20, 2012

Line in sand

Lol, I was typing this message with "lines in sand" chart but the futures puked down to /ES 1392. Well, currently /ES stands at 1418. Remember the flash crash in 2010? The lowest level on that day will be tested later. In other words, sell the bounce in the short term. No TA here, simple common sense. Now that you know we will visit 1392 again, get ready for it. 1417 is the current support level but that will be broken eventually in the coming days. I am looking at the hourly chart here but closing price on the hrly is important as well.

Tomorrow is OPEX, so if I was short I would ring the register at least on partial positions because OPEX days harass both bulls and bears equally.

These types of "crashes" also teach us not to be short options, though they may be fat tail risk events. Accounts will be wiped out in an instance.  





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