Revive the bulls…
The SPY opened with a small jump up that was quickly sold off by the bears. The bears kind of seemed to be in control until about 1pm when the bulls wrestled back the stage. And by 2:30 pm, it became clear that the bulls won!
Market internals are amazing. Check out the NYSE advance-decline volume chart below. Just when we thought the bears are winning, the bulls came back with great strength. Much has to be analyzed after the market close. Whether or not today is an accumulation day depends on overall volume in the NYSE. We’ll only have the number after the market close. Will keep you posted.
With this push to new high, our Nov SPY positions will most likely end up in red. In the beginning of the day, we were looking at a possible small profit. By mid-day, all hopes are gone. When we entered the trades, we have probabilities on our side. For the past two month, we have been hit by moves that were deemed unlikely to happen. The SPX rose more than a whopping 98 points since September. The Dow rose more than an unbelievable 800 point since September. What is the probability of that? We will be taking losses for November. The only comforting thought would be that our losses won’t be devastating.
Too much negative delta at the moment…
