Monster Monday Rub Down
Boy, my puts really took it up the rectum today – fortunately that evil.rat/ES trade more than made up for it. Disclosure – I actually jumped out 2/3rds up around 901 as I didn’t think further upside was possible. Serves me right – that’s what I get for mocking with the system.
Zero was pointing up all day but I didn’t trust the complete lack of participation. Which turned out to be treaturous – we all expected a turn around every 10 SPX points or so but it just kept on melting higher and higher. I decided to hold my puts into tomorrow but unfortunately believe that higher tape here is a very real possibility. One of the reasons I was also holding was that I got whipsawed out on the 11th only to watch it drop for three days afterward. But I’m not going to be stubborn here – probably have given this more than enough for a B wave.
I’m now upgrading Soylent Green to a 50% probability – sorry bears. We made it all the way to the 61.8% mark and holding puts much further is probably not a good idea. FYI – the closing breadth on the NDX was a whopping 12.5:1 advancing – on the SPX it was 12.4:1 advancing. Doesn’t look so rosy for the bears.