Tag Archives: Short

Will we see a short-term correction on S&P 500?

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The blue candle showed on Friday when the job market report didn’t make the grade. The sell-off occured in the first a few minutes and last hour. Before the last hour plunge, it actually recovered most of the loss.

The volume (judging from SPY chart) was more than 50% higher than average.

It was rumored that a big firm sold a lots of puts to their customers and had to sell ES to hedge their position, thus the big plunge in the last hour.

Since the uptrend line is still intact, Monday’s open shall give us some indication of where the market will go. Currently, it’s pretty extended. It would make sense if it goes sideway for a few days or a week to ease up the over bought condition. I would not be a buyer at this time. I will look for weakness to short it.

ES

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It turned out that last night’s low 1057.75 was the bottom. S&P 500 rallied back to the resistence level 1070, a few points away from the high 1075. INDU is fewer than 50 points away from 10K. Barring from any surprises, we shall see 10K pretty soon since everyone is talking about it.

Covered the short, reversed, and rode through half way, but missed the last leg from 1064 to 1070. Went short again at 1068 and 1069. We shall see some pullback tomorrow morning after this big run up, but so far hours into the new session, the market stays right at 1069.75×1070. The bears and bulls won’t blink. The stalemate should resolve in the morning.

ES

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Covered one before the employment data release. Covered two later. Still have one short left for the weekend.

ES

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3.5 point. All longs. Traded 5 contracts first time. Still short 1 ES and 1 NQ now.

ES

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3.5 point. 2 point on short and 1.5 on long. 1042 was the session’s low.