VWAP Reversion At Full Blast

7:20am EDT: This is starting to look pretty ugly early on:

The VWAP reversion game is at full blast – it’s like a wholesale – all stops must be swept!

I hedged long with some ES futures and plan to sit this thing out – it’ll break one direction or the other and the rising channel is pretty well defined. Something to note however is the apparent weakness [again] in the the NQ futures vs the ES.

When the tape gets this annoying we all need to take a deep breath and relax. Good old Ludwig to the rescue – enjoy!

11:24am EDT: I unhedged myself around 1006 – let’s see if this VWAP test holds. If so hedge comes back on.

11:30am EDT: This is a public service reminder:

Expect the unexpected.

11:40am EDT: Public service announcement: I just went into cash at ES 1005. The NQ was dropping hard while the ES was stubbornly ticking sideways above VWAP – not liking this at all.

I thought to myself: We’ll have an FOMC meeting this week plus we get two POMO auctions, one today and one tomorrow. I really don’t need to trade this tape 😉

1:28pm EDT: I was gone for a while and much to my chagrin idiot Mole dumped his puts right before we dropped – snort. Well, I’m long the ES at 1000 now – might be a loser but I got an inkling we might see a swing higher here.

BTW – the result of this morning’s POMO is $6.6 Billion – that’s some nice change if you can leverage it 100 times. Now let’s see if they’ll drop it into equities this afternoon – nothing is guaranteed.