09/06/2011 Intraday Watering

[BullBear52x]

GM, very sharp knife, do not catch it. DBV gap up huge also, something is not right.

[agnosia]

hey all, back to work ! been a nice vacation...my. i'm guessing this gap will get filled by the end of the week like the ones previous. using stop losses but i am swing long /cl from last night @ 83.5, targets 85.37 and 86.45 gaps. my stop is 82.89. good luck all.

my first target met ( that was damn quick ).. taking half off at 85.37 for +1.87 great start so far..

[Al_Dente]

GM, very sharp knife, do not catch it. DBV gap up huge also, something is not right.

where u been
missed your charts with the shady support/res and the neg d etc

[agnosia]

IYR gap filled . lets see what the market is made of now.

[Cobra]

Cobra, another great Market Outlook. Thanks.
Has there ever been any consideration of including with the TA the Inverse of the S&P500 -- NYSE:SH?

Why SH? it decays like the other leveraged ETF. Simply look at long-term SH, you'll see why.

Yes, I am aware of the decay, but thats because inverse funds dont short the underlying stock(s). By their nature they are ideal for short term trading not long term.
I was just curious of you ever use the inverse funds as a way of determining a turn in the market (as one of many tools).

No difference watching SPY, so why use inverse fund?

[Cobra]

the last bull bar could be an exhaustion bar because volume suddenly surged, so a pullback of some kind here. the rebound so far proves this still is a normal market.

[heavenskrow]

well we opened right on support on spy.....so if it holds, maybe more upside....

I hope it breaks though =p

[BullTart]

That might have been it as far as the opening bounce goes... as Al_Dente noted, IYR gap filled, plus Cobra's comment on the exahaustion bar... a full gap fill is still not likely this point.

The real test is now coming... let's see how the market reacts to the selling pressure now that the initial knee-jerk bounce off the open is done.

[BullBear52x]

GM, very sharp knife, do not catch it. DBV gap up huge also, something is not right.

where u been
missed your charts with the shady support/res and the neg d etc

just take some time off out in the wild, thanks and nice to hear that my simple charting is useful to some

[heavenskrow]

RSI trendline of bear flag is broken.....

[agnosia]

/cl gets rejected 60ema on hourly @ 85.46. my new stop for remaining 2 contracts is now 83.89

[agnosia]

IYR gap filled . lets see what the market is made of now.

that's what i thought ... IYR is now the great tell

[BullTart]

On the SPX cash index, we are rattling along the lower trendline of the bear flag on the hourly... IF we break below this, will add more to long TVIX positions.

[BullBear52x]

No panic selling like I would like to see, so.....more down, we should see lower price until we see the sign of sell first ask question later type.

[Mongoose]

Non Manufacturing ISM @ 53.3 New Orders @ 52.8

[Al_Dente]

Where is all the selling volume? Only in the overnight markets? What’s a day trader to do?

Last Thurs on Fast Money, guest trader described the hedge “all the traders were taking” to protect against The Bernank Twist and all other evils: At SPY 121-ish, they were buying Oct SPY 110 puts and selling the Oct 126 calls. At near net-zero cost (at circa 8/31 and 9/1 prices), the traders are protected below 110 SPY with the puts, AND THEY DON’T HAVE TO SELL THEIR STOCK.

He failed to mention how these “traders” would cope in the loss gap between 121 and 110 SPY before all that “protection” kicks in.

Okay then, we gotta buncha “traders” who aren’t selling their stock, hmmmmmmm.

[AK84]

open > close after 10.30 ? mean more downside ahead?

break 1140 and we go down to 1114

[jarbo456]

Where is all the selling volume? Only in the overnight markets? What’s a day trader to do?

Last Thurs on Fast Money, guest trader described the hedge “all the traders were taking” to protect against The Bernank Twist and all other evils: At SPY 121-ish, they were buying Oct SPY 110 puts and selling the Oct 126 calls. At near net-zero cost (at circa 8/31 and 9/1 prices), the traders are protected below 110 SPY with the puts, AND THEY DON’T HAVE TO SELL THEIR STOCK.

He failed to mention how these “traders” would cope in the loss gap between 121 and 110 SPY before all that “protection” kicks in.

Okay then, we gotta buncha “traders” who aren’t selling their stock, hmmmmmmm.

i'm sure someone else can speak to this better than i, but my personal opinion is that those FM guys are good at what they do, however, i would never consider their recommendations. 1) i think they are probably already in those positions or out of them before they announce it 2) consider those positions, but it's hard to say if they're actually in them at all with real money 3) are dealing with far larger amounts of capital then your "home gamer" (as they love to call us), and as a result, have hedges on core positions while still retaining many millions of dollars to trade in the short term.

either way, it's hard to gain an apples to apples comparison with what they do and what you at home can possibly do.

speaking to that particular trade setup - the foundation of option straddles is that they need time to "work out". if you can't endure the pain, nor willing to pay the theta on the straddles, then any type of multi-option strategy probably isn't for you.

[uempel]

Lower Fib Fan looks ok, but SPX fell out of both circles. It's difficult to DT this:

[agnosia]

i don't like the action in /es.... i am selling another /cl here at 84.6... keeping the other one at break even stop 83.5...