One of my challenges is looking at so many assets so closely that any changes like what I saw yesterday send up red flags when really they are changes, but not of a large or long enough character to really warrant the red flags. The deterioration from later in the afternoon yesterday continues so far today, although i wouldn't say we are out of the volatility zone just yet. The Q's look a little better than the SPY,that's because of AAPL which did see distribution on today's intraday move above the daily highs of the recent range, it's now sitting right on them as support, I suspect they'll break, otherwise why distribute them unless this is an exodus from AAPL again, but the rest of the charts aren't supporting that idea.
Here's an idea of what the deterioration on the SPY loos like, remember it's still early and remember there's no reason in the world to think that volatility won't continue to increase. Og and by the way, yesterday's Feb (nest week) QQQ puts are in the money, I'd like to see them a bit deeper in the money, but working already.
SPY 1m leading negative as soon as the gap was filled.
migration of the divergence to the 2 min chart...
And to the 3 min chart
And to the 5 min chart, you know what that means. I'd keep an eye on the intraday NYSE TICK for any potential reversals.
There are some other very important assets that I need to look at.
Oh and the AMZN short term calls are still open, there are positive divergences in the short term that keep me comfortable with them, as you probably know the equity short in AMZN is also still open, seem counter-intuitive? They are two different timeframe trades and a hedge of sorts.
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