Today marked the biggest market turn around since November 13, 2008 - which was the last time the market was down 4% or more and made a turn around to close up for the day. We have seen more V Reversals lately but not to this extent as it isn't a normal pattern.
200K Portfolio = -$3,320.50
50K Portfolio = -$1,800.00 (Traded with Micro NQ 20)
There is still too much liquidity buying the dip with no real fear - even with a 35 VIX. A hand holding day for the dip buyers to call for capitulation and buy the dip. Today reminded me of two weeks ago when Marko Kolanavic said "time to buy the dip".
Today, other popular bulls called this capitulation and said it was time to buy. I didn't think it was quite short term capitulation but we may bounce here. To say the market is oversold here means you think that the market should be where it was when it was extremely overbought. I guess it is oversold from overbought levels..... The Micro NQ Portfolio was a highlight and up about $600 on the day.
The Momentum Reversal NQ was a highlight with +1200 per Micro NQ. The 50K Portfolio that we traded today included the Micro NQ Portfolio so it was down -$1800 instead of down -$2400 without the Micro NQ setup. Copper Short continues to be a highlight. Cobra Crude had a nice short trade that was also a highlight.
Gap Continue and Reverse E-mini S&P was the dog of the day/month/year. We are looking to cut some of these "dogs" at the right time or scale back. The 200K is right at a worse case drawdown. We have to give it room to bounce when volatility is this high. The 50K is on its second day of a worse case drawdown. Since the likelihood of a market bounce exists, and we are seeing markets that when they move higher, being easier to trade, we are giving it some additional room here as well but may cut Gap Continue and Reverse ES or move it down to Micros.
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