If you do a fib off the value area since June
We are right at the 1.618 extension now
Whether this is the bottom, or market wants to target 2.0 extension
We should be due for a relief rally
NFA
$QQQ
So today
Big intraday moves with the SPX, while closing at ~0.5%
The fly/condor paid
My honest opinion on how to trade Monday?
After such a vol up spot down day like today
The following session tends to have a wide range but go nowhere
These are some of my favorite days
I have already opened a few short vol trades to monetize
A mixture of flies and condors, all defined risks that I am happy with either outcome
NFA
$SPX
Interesting day
SPX 3rd straight down close
-3.55% off highs
below its 20/50DMA
QQQ sitting on its 200D
VIX 21.15, front end inverted into the election.
Historical analogs (SPX+QQQ+VIX paths, n=25):
+1.68% avg over 20 days π’
up 76% vs a 61% baseline π’
Context, not a forecast.
My honest opinion on how to trade Monday?
After such a vol up spot down day like today
The following session tends to have a wide range but go nowhere
These are some of my favorite days
I have already opened a few short vol trades to monetize
A mixture of flies and condors, all defined risks that I am happy with either outcome
NFA
$SPX
Replying to @Trader_Pow
5)
Does a Friday $SPX drop of 1.5% or more tell you anything about Monday?
After 178 such Fridays, the next day averaged β0.22% and was up 55% of the time. All days: +0.03% / 53%.
That's no edge. 1 in 10 next days fell 2.8% or more, so plan for range, not direction.
We just had some insane price action past two weeks. Let's look back and see what tends to follow:
1)
$SPX fell 1.82% today with VIX more than 3 pts above its 50-day avg.
After 201 days like this since 1990, SPX averaged:
1 wk: +0.76% (60% up)
2 wk: +0.99% (66%)
1 mo: +1.50% (66%)
All days: +0.77% / 64% over 1 mo. Since 2022: +2.49% / 70% (n=30).
4)
Midterm-year Novembers for $SPX, 1964β2025:
All Novembers: +1.61%, 69% up (n=62)
Midterm years: +2.12%, 80% up (n=15)
First 5 days of Nov, midterm years: +1.51%, 87% up
The losers: 1974 (β5.3%), 1994 (β4.0%), 2010 (β0.2%).
5)
Does a Friday $SPX drop of 1.5% or more tell you anything about Monday?
After 178 such Fridays, the next day averaged β0.22% and was up 55% of the time. All days: +0.03% / 53%.
That's no edge. 1 in 10 next days fell 2.8% or more, so plan for range, not direction.
The $QQQ just tagged the weekly open at ~704
Seems a bit excessive to the downside
Need $QQQ to hold 712-715, or else we may see another lower low (<700)
$AMZN earnings maybe the push market is waiting for, up or down
Hyperscalers ERs have been mixed so far, so I don't really have a directional bias atm
But if we get another lower low, that will be my next entry for another swing long
NFA
Doesn't look good when a stock retraces up 61.8% and then craps π©Έ
$NOW
Hope everybody's port recovered nicely today
Keep in mind that unless we closed > 728 on the Qs, it's still a series of lower highs and lower lows
Let's hope FOMC will confirm the trend change
$QQQ















