Bounce back continues..

So for the past couple of days, I have been mentioning that my preferred scenario is for the bounce to continue after consolidation above 4920 - And that is what the market did.

In between however, I began to wonder what if the global markets crash today - what then? There were reasons. Merkel's loss(big big news from a Euro perspective - its going to breakdown very soon), Euro bank issues, US economic news etc..It could have all come to a 1987 style move today - but there were some interventions out there that happened which has prevented this for now - I generally dont like talking fundas but just thought of mentioning this because its important and is going to come back to bite us very very soon. This may be reasons for the next big fall coming soon.

However we are traders and yesterday when the market was breaking out above 4980/90, I covered all shorts almost at breakeven but left the hedges on and doubled up which is showing a good profit today. I plan to cover atleast 50% of this if not ALL of it today. The other option is roll up to higher strike prices to reduce the amount of money at risk(holding 5100 calls..can roll up to 5200 calls).

So now as I have been saying is my preference, we are in a C up of this particular corrective structure - likely some sort of wave 4 or wave B. After which a final wave down is pending into November end timeframe. Topping area? Good question. I have been saying 5150-5180 for a while. If we get there, 5200/5250 area is strong strong resistance(previous breakdown area). So thats the point to build shorts. However if we manage to somehow get above that, we have to reevaluate. But we shall see. I dont favour us going above 5200 by much for now. So I will be playing accordingly.

Oh and one more thing. Today my blog hit 50000 unique views/visitors. Inbetween big breaks and what not. Still I am back and running - I hope better now than before. And also hope I will not ever stop this again.

Thanks to all for their support and encouragement in this journey!










EDITS

1. Booked the calls. Not very happy with opening. Into resistance area now. I also started rebuying my longer term puts(Novemeber 4800,4700 strikes) again

2. So been adding few puts in small amounts only for November series. This is longer term so I am not too worried about small term fluctuations. Also been adding some NF shorts with hedges placed. Again small amounts because I am well aware that this can go till the 5200/5250 range.



Best,
Lee