Hi Everyone,
Friday’s afternoon session saw a massive rally on the indices and across the board. By some luck as well as judgement (I was a bit wary about the impact of the Employment Report so thought best to take profits) I closed all my positions at about 2.20pm EST (7.20pm UK time just before going out for dinner!) which turned out to be amazing timing. The trades were straddles, all in the black with an average 35% gain in less than two weeks.
Ok, so what now? Well, with such a late rally, my instinct is that we’ll see some follow through and the markets should continue to recover next week. I’m personally hoping this will lead to more bear flags setting up by the latter part of next week. Better still would be a steep rally to test the January highs before resuming the downtrend. As ever though, we must only trade what we see. And what we’ve seen on Friday is a classic reversal signal which points to the markets rising in the very short term.
As for our systems, they’re busy crunching the new options symbols as we speak, so we should have the TradeFinders producing results on Monday night. I for one am missing the OVI and a few of you have commented it’s like trading “naked” without it.
For more information about the OVI and how to learn about straddles in the same place, take a look at http://ptc.flagtrader.com.
Thanks again for your patience.
All the best
Guy