Going Long ES here at 1377.25. STOP 76.25 Was early trying to find an entry yesterday. In case anyone is actually reading this and wonders what the hell I am doing as I have written on ET many times before I take a directional position using options and hedge with intraday futures trying to catch moves against my position. I exepct a sharp and significant rally before the end of this week based on expiration, rate and stimulus package chatter. My plan is to catch this move with futures while leaving my puts in place. Then hopefully exiting near the top of the pull back and taking some of the profits from the futures poistion to add to the core options position. I like to call it short term trend following on steroids It also involves some selling of near month options against the core position in later months. Long again @ 73.25 STOP @71.00
LONG 70.50 STOP 67 March low on SPX very close could offer the support we are going to bounce off. If I was a scalper I would take the 3 points (my entries almost always go positive 1-4 points before I get stopped out but if I took them it would defeat the purpose). I have considered scaling out part of the position for a scalp to ofset being stopped out witha loss so often but that would involve trading a significantly larger size than required for a hedge and am not comfortable doing so. Here is the test at 75, will it break out of the DTL and prior resistence or fall back. A scalper would take profits and short here. Moving stop to 74 Moving stop to 76