Zeev's Turnips Patch-No Politics (ZEEV)

[Alchemist]

Morning Volatility Report

Friday was a wide range day (WR4, WR7) up in all the indices. The odds today are for a choppy narrower range day.

Currently in the premarket there is about a 1/2 percent gap upin the ES and 1 percent gap up in the NQ. Both instruments are trading near the top of their globex ranges.

This medium sized gap increases the odds for a trend day somewhat, in either direction, but I'll play it as a chop day. My first play of the day will be to fade the gap up. I expect more early up (maybe a lot), but I just started averaging in short at SPY 84.60. I'll watch ticks and SOX, BKX (banking), and RLX (retail) indexes for early morning clues on when and if to short more or bail on what I've got.

There is a holy grail short trade on the daily chart at S&P 850.

The XAU gold index had a fifth trend day in a row. The last five days have been trend day down-up-down-up-down, all days in the same range. The daily, 120 minute, and 60 minute ADX are are getting lower. It appears the gold index is poised for breakout mode.