By Sell Puts
We all know in the seconds leading up to and after the FOMC announcement the algo's go apeshit driving the SPY in either direction 50c in seconds. My advice is stay out of the battlefield until the algo's and traders alike stop hitting hot keys 12 times a second. Once all the dart throwing is over the market should start to make a powerful move once everyone is on the same page, it might be a rocket down a dollar or a move up, who knows.
As for today i have a feeling we are going to rally back up to near even on the day, though if Bernake pulls a fast one we could drop like a rock. Volume has still been quite low, it is late summer so muted moves could be in the cards.
The chart above shows the 111.06 level as a point of inflection, i posted the chart on August 6 we may pivot or fall right through like butter, all depends on on the macro move i talked about earlier after the dust settles. The market moved up into the 113.25 level failing to break higher, seemed as if the smart money was taking on VIX and VXX premium, sell higher buy low right? i think so.
The chart above shows the 111.06 level as a point of inflection, i posted the chart on August 6 we may pivot or fall right through like butter, all depends on on the macro move i talked about earlier after the dust settles. The market moved up into the 113.25 level failing to break higher, seemed as if the smart money was taking on VIX and VXX premium, sell higher buy low right? i think so.
The chart below is a Daily SPY, notice the resistance point we are sharply under today, highlighted in blue.
