An interesting divergence occurred in yesterday's session. Whilst breadth and A/D lines were very weak, cumulative ticks fluctuated up and down to only finish marginally weaker at -10,000. This to me would indicate that not all the sentiment is bearish as buyers are still hitting their fair share of offers as opposed to seller's hitting the bids. Seasonalities are very bullish today and for Friday so don't be surprised if we get some kind of pop here.
I couldn't help but sell some volatility yesterday in the form of a OEX Dec Put BWB. Strikes are 525/520/510 for a $0.60 credit. Only did a half sized order in case this market really does fall apart.
We shall see how it goes.....
Yes the market swings hard on common news, the art I guess is to 'zoom out' to the respective scale each of our individual trades are sensitive to, and allow the day-to day fluctuations to provide vol selling opportunities.
ReplyDeletedP