Short Term Trading

[Dimension]

buzz:
...but I think puts were being closed as cots are thinking ST bottom close or in...

or could be Puts were being bought as a hedge...as institutions usually do when going long the mkt. we should know monday by keeping an eye on the OI of those Aug and Sept 33. if the Aug 33 OI increase to near 300K, then those are fresh new positions and with that kind of volume (196k on friday) it has to be mostly insitutional.

yeah..i think a bounce tomorrow is probable...but with the type of damage seen thurs and friday...sellers may jump on that bounce...so i agree with that tight stop, or better yet, take the green off the table and wait out tuesday on the sidelines. the next two weeks or so may be choppy if we are putting a bottom in here...i wouldn't be suprised to see +/- 100 on the dow on more than a few occassions. Amongst the various "indicators" i will be looking at during this time will be the QQQ option volume...i'd like to see an increase in volume with more puts being bought than calls, which would be indicative of a market bottoming...as it would imply institutions are buying the dips and hedging options.