As you saw last night we had some positive divergences in the averages from 2-5 min or so, these were from Friday so I'd like to see more information considering Friday was Quad Witching and considering what happened to futures Thursday night, still I'm considering maybe a SPY Call position or a 3x leveraged long in one of the averages as either an upside hedge or as a quick trading opportunity.
Other than the charts I already showed you Friday and last night, here are a few additional ones very early today....
The EUR/USD open yesterday and this morning, the pair is performing better than the S&P for the start of the week, there may be some arbitrage players looking to lift the S&P as the Euro is higher/Dollar a bit lower than the implied vale of the S&P correlation.
The Euro in ornage vs. the SPX this morning to the right on a 1 min chart showing the Euro outperforming the SPX when these usually move together.
And of course the gap in the market, these almost always get filled, too much HFT action seemingly for them not to get filled.
So at worst I see it as a known premium risk, maybe a decent quick trade, maybe a decent short term hedge.
I'll probably consider at least a small position in something like SPY Jan 140 Calls or UPRO long (3x long S&P) and if there's more confirming information, that position can always be enlarged, note though the instruments I'd prefer are also the same ones I prefer for short term trades.
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