Today's rally off of a new low did not come as a surprise. So far, the rally has been contained by the 60 min 34 SMA. A piercing is okay, but price should quickly retrace. We're currently at a 50% retracement on the SPX and a 61.8% retracement on the IWM, so we are definitely at a place where prices could turn back down. I'm looking at this first wave 'a' to finish in the 785-810 range.
I added some May IWM 40 puts near the close with an avg. cost of .45. Best to your trading. I also sold covered puts on half my IWM 38 position with the 36 strike yesterday at .22.
Posts
Rich,
ReplyDeleteWhy is todays action not b of B? Purely from a time perspective?
MikeT,
ReplyDeleteYes, you are correct, this larger wave B should last at least 1 wk but more likely 2-3 wks, so I'm looking at this as a smaller wave b within our first wave a.
Rich,
ReplyDeleteit seems it very very strong. Sad.