Today is going to be a wait and see day as I cannot glean any information from the charts. The reason for that is because things for the most part are going sideways as everyone sits on the sidelines waiting for a decision on interest rates from the Fed, who are currently in their two day meeting. Lets take a look at the QQQ chart below from today:
As you can see I profited off the inverted hammer yesterday, which told me that there was a 75% chance that the cubes would be up a bit today, so I entered the high risk soon to expire June option cubes trade. Sure enough, the cubes were up a bit today allowing me to take 15% overnight. I exited from that position because I did not see too much more of a upward push for the cubes today, which would mean the option would begin to erode, and I can already see that happening as traders are going to lunch and the market for the most part is drifting sideways.
The cubes are still in a coiled spring formation and that is why I am sitting on my QQQ puts. Any little thing could set it off. Greece, rates raise, etc. It is really going to depend on any news that comes out in the next several days. Which is why with no advance information on the news and the chart above not telling me anything because everyone is waiting for more news, I will not be placing any more trades for today, instead I will wait and see what happens tommorrow.
What would be great for my positions of course is that the above chart is indeed a negative coiled spring waiting to blow and Greece does something the markets don't like or the Feds raise rates. Then we are off to the races.
So, we sit tight in a good spot and watch and see what unfolds. Until then, stay frosty.
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