Monday, February 22, 2021 7:10:43 PM
Possible H&S Top
Market looks too risky for my taste.
I haven’t traded anything over the last two weeks. And if I did, I would always buy a stock then sell its Calls minutes or hours later -- reduces risk by immediately bringing in cash.
It's looking to me like $SPX (daily chart at the top) is two-thirds of the way toward forming an H&S top. If it's going to continue with that, then it has to trade lower into the right neck line then bounce as it completes a right shoulder. Then what ... flip a coin?
I could trade that with Buy-Writes using deep ITM CCs as there are many days yet to go, but I'm looking for an excuse to not trade anything for the next few weeks for personal reasons.
As for those long solid blue lines going off the left side, put them on your chart then check their origin. The dashed blue line is the target for an H&S correction if it happens and goes to its typical destination.
Market looks too risky for my taste.
I haven’t traded anything over the last two weeks. And if I did, I would always buy a stock then sell its Calls minutes or hours later -- reduces risk by immediately bringing in cash.
It's looking to me like $SPX (daily chart at the top) is two-thirds of the way toward forming an H&S top. If it's going to continue with that, then it has to trade lower into the right neck line then bounce as it completes a right shoulder. Then what ... flip a coin?
I could trade that with Buy-Writes using deep ITM CCs as there are many days yet to go, but I'm looking for an excuse to not trade anything for the next few weeks for personal reasons.
As for those long solid blue lines going off the left side, put them on your chart then check their origin. The dashed blue line is the target for an H&S correction if it happens and goes to its typical destination.
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