Close:
Sure enough, NQ/QQQQ/NDX closed gap of the opening trading day of June and dropped from there.
A spot check of VIX options shows some heavy call buying today at the 22.5 strike. Obviously, lots of hedging going on, but VIX options are often smart money. In fact there was even call activity at the 27.5 strike. At 50 cents, someone is putting on a lottery play.
XLF (financials) is still stuck in the March gap, although today's candle was a doji. Are we finding a bottom? It would be cleaner to close the gap at 23.45 and have a key reversal from there. Maybe we will see that, but any drop on volume below 23.45 would set up a retest of March lows. A more conservative trade would be to patiently wait for a daily close above 24.65. Until then, let them fight it out without your money.
Sure enough, NQ/QQQQ/NDX closed gap of the opening trading day of June and dropped from there.
A spot check of VIX options shows some heavy call buying today at the 22.5 strike. Obviously, lots of hedging going on, but VIX options are often smart money. In fact there was even call activity at the 27.5 strike. At 50 cents, someone is putting on a lottery play.
XLF (financials) is still stuck in the March gap, although today's candle was a doji. Are we finding a bottom? It would be cleaner to close the gap at 23.45 and have a key reversal from there. Maybe we will see that, but any drop on volume below 23.45 would set up a retest of March lows. A more conservative trade would be to patiently wait for a daily close above 24.65. Until then, let them fight it out without your money.
This entry was posted
on Wednesday, June 04, 2008 at 6/04/2008 06:48:00 PM.
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