Opening Indications

Friday afternoon I talked about position management of some trading (short) positions like FAZ, SRTY, VXX calls, etc. From what I saw Friday, my gut feeling was as follows (from the FAZ Position Management post)...

"Yesterday I put out a trade idea, Trade Idea: FAZ Long toward the EOD. Today FAZ has been up over 3% and I could trade around it by taking those gains, but I feel the same way about FAZ as I do about VXX calls and SRTY long (both are giving me short exposure to the market) that I just posted, VXX Call Position and SRTY long Equity Position Management

Just as we saw earlier today with the market averages first and then the VIX futures, it looks very much like we get this continued noise/chop which has kept me from loading up the truck as I don't want to have a bunch of exposure out there and no dry powder in a choppy environment so I decided to keep most of the short exposure in the trading portfolio as well as some options, but not add to them until I feel we are at the right place and time to do so, my gut feeling from the charts is that will be early next week, Tuesday I'm thinking as of right now.

So I'm going to leave FAZ long (3x short financials) in place."

And from the VXX Call Position and SRTY long Equity Position Management post Friday afternoon...

"From earlier analysis it looked pretty clear that near term (2-3 and some 5 min charts) that we'd see some market upside, this seems to be an extension of the choppy noise that has dominated the later part of this week and I expect it to be another short duration move, perhaps a day.

However, the signals for the downside in the averages and in VXX/UVXY (long) look good so as far as SRTY (long) and VXX calls go, I'm going to leave them both open even though I know it's highly likely there will be some near term drawdown, I think it's not going to be a problem and I want to maintain that short exposure. "

Remember, the FAZ, SRTY and VIX positions were all open BEFORE Friday, the only position added Friday was FXI (long).

Opening Indications aren't all that interesting, but I'll show you some charts that include some of what I'm talking about above...

 SPY 1 min opened in line, there's a 1 min positive from Friday so this morning's price action makes sense as 3C signals are picking up where they left off Friday.

This is a SPY 2 min chart with a near term, but small 2 min positive divegrence from Friday, this is what I was talking about above from Friday's afternoon posts, it looks like short duration chop to the upside right now and Index futures intraday confirm the same for the most part.

SPY 3 min with a little larger relative positive, not much on the 5 min in SPY though.

 There is a small 5 min positive in the QQQ, but this just isn't the strong signal that I'd trade, it looks like a continuation of the noise/chop from mid to late last week.

I'm still waiting for everything to line up before making some larger moves which I said I thought may happen by early/mid-week, Tuesday specifically.

 IWM 2 min positive also looks like near term upside, but still in the noise/chop category unless we build  from here which I have no evidence of.

DIA 5 min.

So as I said Friday, it looks like a continuation of this noisy chop, but I do think that will turn around this week, we have a very busy week after today including the F_O_M_C on Wednesday.