The S&P futures exemplify my thinking about very short term trades right now, it looks transitional and can break either way. Longer term short positions are already in place, short term positions have mostly been hedging and taking advantage of the market environment, like today's SPY weekly Put closed at a 35% and 49% gain.
1 min ES had a positive divergence, this is where I was closing out the rest of the SPY weekly put from yesterday. The current position could be called positive, but it is still facing downward so I have to assume it may be moving to the negative just as well.
The 5 min ES chart which was the signal for yesterday's SPY put, there's a possible 5 min positive here, this isn't strong enough that I would take on a 1 day SPY weekly call trade, but I don't want to be on the wrong side of what it likely a transitional signal.
Bigger picture, the 15 min Es chart from earlier that was leading negative is doing so even worse so I'm ok with the longer term positions, the longer term long VXX, shorts, etc.
If an opportunity pokes up to make some short term $$$/hedge (hedging lately has been pretty profitable), then we'll go from there.
For right now, I think it's best to just let the longer term shorts work until we get a better picture of the very near term.
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