Options Wonderland

[Fox13]

Last week it was hard to trade indices. Let,s take as an example SPX on a 15 min. chart that I have shown before. A good SHORT signal came on Wed 14 afternoon. Got in with all sorts of stuff and got “whipsawed” on Thursday afternoon. I kept only a few puts (not enough of them…) but increased my VIX calls holdings, because VIX was still strong…Could I have known that this was only a tricky whipsaw? Yes, by following the sequence of the pseudo-fundamental events that afternoon…But not only that: while THEY were pushing all indices up, TNX had fallen from the SKY and its forward looking correlation with SPX (discussed in #58003) was a clear indication, on intraday charts, of what was written on the wall.

Next time I will be stronger…