The market cracked that important 2120 area and proceeded down quickly (as expected if it broke that area) and it even briefly went through the next support at 2100 only to close at about 2104. So we’re now about 1.5% off of all-time highs but the attitude and sentiment are very bearish (much too bearish when we’re just 1.5% away from ATH) which usually lends itself to a bounce as it typically means many people are under-exposed to the market (already sold or unexposed = less sellers going forward). AAII Bullish sentiment is at 5 year lows, Stocktwits stream is quite low etc etc which usually means that the worst of the selling is likely over. We’ll probably extend a bit lower through 2100 but I’d expect up momentum soon.
My plan? I’ll give the downside on the RUT until about 30 delta to adjust and the downside on the SPX to hit 25-27 delta before adjusting. Not a whole lot of plan 🙂
I added a 1270 calendar to our RUT trade on Thursday as a slight delta adjustment for any upside risk. Other than that, there’s been no adjustments since Thursday. The MIC trade is sitting at about 4.5% which is fantastic given yesterdays waterfall decline and increased volatility. I gather without that increased volatility the trade is sitting at 5-5.5%.
The SPX trade is sitting at 4.2% and hasn’t been touched since Thursday. It’s sitting at about 7-10 points away from a downside adjustment and I’ll monitor that closely. If we can get a slight bounce and end the week anywhere between 2095-2140, we’d be sitting very nicely with the trades.
The Protector Alpha is down about 0.7% yesterday (as expected) with a decline like that. A new thread appeared on the main forum/community that I am a part of, and it is a discussion talking about new methods for the protector. I am quite excited by the developments and will start putting some thought into it.
As for the Paris trip:
