Beware the Four Witches Today! Today being the Quad Witching day (options on four different kinds of instruments expire today – index futures, single stock futures, options on index futures, options on single stock futures), expect hightened volatility today. Beware sudden spikes in either direction, especially during the last hour of the trading. Positional Trading (more…)

Not Going Anywhere Fast The market internals point to many divergences across different segments which makes for a rough ride for a while – regardless of whether you are a bull or a bear. If taking new positions, you might need wide stops to let those positions play out. If you don’t have enough capital (more…)

Our Positional Models Turning Short After selling a long and going flat, our positional models are going to take a short position on the open following the index’s close below 4445 yesterday which has been the published take-a-short level. As we wrote in our morning trading plans yesterday: “The pattern of early session gains followed (more…)

Caution Signals Emerging The price action last few days is causing our models to raise some early caution to the bulls. The pattern of early session gains followed by losses behooves the bulls to turn a bit more cautious against jumping in. Our models indicate no bullish bias while the index is below 4515 on (more…)

No Bull. No Bear. In our last trading plan – published on Thu 09/09 morning – we announced that our positional models went flat after selling an open long position, with a directional bias shift to neutral. Over the two sessions, markets slipped through some of the support levels we have been publishing, confirming our (more…)