Pretty quick days today for us. Of course when you only trade once a day per account it makes it easier. As I said in the pre-market commentary I traded the first push into 51/52 before the open which I felt strongly would hold for at least a rotation which it did. Sometimes the move happens pre-market and thankfully volume was strong so I could take advantage of it. After the open we had a nice Big Lots setup as we call it (will explain in Tuesday’s webinar) which NJ traded. Short at 59.50 flat at 58.00. I had the OH set for just a scalp but it didn’t set up right for me. I felt that it was too close to all that acceptance in the 60s which would provide a magnet to go with the rejection orginally, but when the failure was more pronounced I agreed with NJ that with the institutional confirmation that was the right trade after all. The VIX gapped right down and is now flatlined. Too tough to call from here. I would advise against selling 62 again and I would probably advise against buying 51/52 again as well for those hanging around. If I were to keep trading I might scalp 62, fade 64 and/or 68/69 on the long side. On the short side, selling 50 into 47 or even on to 44 might come in to play and I would surely buy 42 if we got there…

UPDATE: Short 50.50 flat at 47. Texbook from the pre-market sheet. You just knew you would get that flush on a subsequent test of 51/52. That is why I chose to only fade it pre-market – I didn’t feel it would hold another move. The Eurp is selling off hard and the bonds are bidding up and have been all morning. I wouldn’t want to be long for any kind of directional or momentum trade right now…