UPDATE 9:49am EST: I just used the little swing below to leg back into my spread. Took a bit of a hit this morning but added to the profits I made yesterday I’m break/even for the past 2 days. Not great but that’s how it goes sometimes – market likes to throw you a curve ball – roll with it and don’t have an ego. I’m going to watch this action for a while and it will take some real downside conviction for me to leg back out. We breached the 917 line on the SPX for a second time now (which is pretty bullish) and I prefer to play it safe until I get a better feel of where we’re heading.
UPDATE 10:32am EST: Sorry for the outage, guys – my hosting company keeps having difficulties. I would move to a different hosting provider, but they all suck in one way or the other and mine is supposed to be one of the best. Might have to upgrade to a co-hosted box soon, but it’s not cheap.
UPDATE 10:55am EST: There is practically no momentum in this market right now – thin tape continues, which makes me a bit nervous. Of course it’s tempting to unwind my hedge here but I won’t right now. Whenever things start looking erratic it’s usually best to take a step back and do nothing. The complete lack of momentum is disconcerting – anything can happen at any time. It’s treacherous out there today, be careful.