IWM April Put Follow Up

Here's the P/L for the April Puts opened yesterday @ 3:41 p.m.

At the fill of $3.44 the P/L for this position opened yesterday as a short term position, comes to a gain of +27% for a day's exposure.

I did not close this position for any other reason than the short term gains and what I mentioned...

 The 10 year Treasuries started showing a relative positive divegrence, this was the first thing that got my attention as small as it is, but you know I always like to buy puts in to strength and sell them in to weakness.

I noticed higher volume as well as some "Hammer" bullish reversal candlesticks across the averages, when I see a larger spike of volume, it's usually a short term capitulation moment. With the candlestick and the increased volume that makes the reversal candle many times more probable to work.

If the IWM even went sideways those gains would start to dissipate and it was meant as a short term position so plan your trade, trade your plan unless there's something that trumps that. I also took the op-ex Friday max pain pin in to consideration.

As for Carry trades, because the $USD Dollar Index flew on the policy announcement, the USD/JPY flew higher, NOTE the market DID not follow as is typical.

Other carry trades like EUR/JPY and AUD/JPY didn't look as good, but still strong. I also noticed it looked like there may be a turn in the carry trade USD/JPY and took that in to consideration although that would normally push the market down further, the bond market was really what first alerted me.

I DID NOT CLOSE THE POSITION BECAUSE OF ANY MASSIVE OR EVEN MINOR POSITIVE DIVERGENCES, IT WAS STRICTLY AN ABUNDANCE OF CAUTION IN PROTECTING A 27% 1-DAY GAIN AS I HAVE A FULL HOUSE OF SHORTS, IT REALLY DIDN'T ALTER MY EXPOSURE AT ALL.