Thursday, December 3, 2015

Recap and Morning Update

We went in to yesterday short NADEX, GLD and Volatility.  All three trades paid off for us.  Then we bought NADEX below the S1, and that trade was stopped out for a loss as the market sank into the close.  Likely due to the shooting news.

But the market gave me a clue that I ignored.  When the market is in a downtrend, and you get a counter move from 1 to 1:30 that is moving higher, 1:30 usually will market the highs for the rest of the day.  I should have closed my NADEX long at that point and waited for a higher high.

But the end of the day afforded me an opportunity to short vol again with VXX puts which I did at 18.62 area, which are likely to pay off nicely this morning.

For today, because of the news today and tomorrow, I am unsure of direction, but premarket suggests a green day.  I bought NADEX 2075 for $70 yesterday (I did not post it as it was too speculative to share).  I will let the market open and let the market commit before I add anymore to NADEX.

For other trades everything looks like a mixed bag so nothing jumps out at me. Starting tomorrow and for at least the next week, the market is seasonally weak, so will watch for some short set ups, and TVIX to purchase.


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