Bought dax covered SPY shorts

Yesterday Fdax fell pretty hard in the afternoon, all the way to the low 9100s (M4).

So I sold Dax May OTM put spreads, and bought OTM calls for a small debit.

At the same time I closed out a long SPY May02 PS I had opened a few weeks back (188/185).

I still have a stub of the position  (1/3) and will look to get rid of it today on any weakness.

No idea what the move up (IF it happens) might be, but signal triggered longs yesterday at end of day, hence the PS sales.

SPY wise.. I’m covering out of exhaustion, will look to re-enter some shorts opportunistically if the rally (that I think may be coming) is sharp enough. Either than that, playing earning season, and putting on credit spreads on individual stocks when and if volatility warrants.

Bullshit Bingo... requires no further comment

Yo-yo effect

To make things easier>> how do you quantify the amount, speed and exact moment of bounce when, unlike in the above contraption you do not know the length of the cord andthe weight of the Yo-yo?

And what if you find that the cord has been substituted by an elastic band? How does THAT change the outcome ?

A simple Pulley

A" pulley does not offer a mechanical advantage, but it does aid in changing the direction of the applied force on the load".

How does this relate to Dax and related markets?

Discuss

Out again

Pretty fast turnaround on the Dax today.

Hit sell signal this morning with 5950 as entry level, but have cut earlier because of both the time stop getting close (6 hours) and the fact that both Bunds and EURJPY are rallying. This is not ideal for a continuation of weakness in stocks, and thus I have covered the shorts with very small profit.

Quite frustrating, as this is the fourth trade in a row that starts well but ends up being pretty much a scratch. Back to the drawing board, waiting for next set up.

Applicable to trading

Out

After hitting the sell set up late afternoon yesterday (square on the chart) we hit the limit of the time window for the signal to really work this morning.

Stats back to neutral, so decided to take position off for a small profit, inconsequential in the scheme of things but nevertheless called for. Discipline first, profits after.