Members' Question

I've had a few questions as to why I haven't entered one of the fade/Call (option) positions yet, the answer really is free will.

I'm not too concerned about premiums getting away from me, but what I am concerned about is making sure this is a strong looking trade set up and not just a, "the market has dropped a lot today, it should bounce". I need something objective that's not my opinion, but something I can see and something that moves me.

As far as free will, the best thing about being a trader and one of the most useful things is free will, we don't have to trade. If I miss a good trade, so what? Another will be along, I'd much rather hold on to my chips than try to make them back so if even a good trade isn't enough for an entry because it's not a great looking set up, I don't care if it does exactly what I expected and I missed the bus. If the set up isn't strong enough, I'd rather leave it to others and wait for the next one.

As far as my reasons based on charts...

 IWM 1 min looks good, but also has a slight negative right now suggesting the probability of a bit of a pullback intraday which is what I'd like to see any way.

The 2 min chart is strong....

The 5 min chart is now seeing migration and strength. Now look at the Q's...

The 2 min QQQ is similar to the IWM, but the 1 min chart...

Zoomed in there's a clear, obvious intraday negative that suggests intraday prices move down a bit from here, this is why I haven't entered.

Intraday breadth via the NYSE TICK confirms...

Here you can see the trends for today, note TICK falling out of the bottom of the channel to the right, just as 3C forecasted intraday.

When this resolves and if the charts turn positive and look even better, I'll make a decision on an entry at that point. It's not always just about premiums and timing, sometimes you have to take a pass if the overall position doesn't inspire you enough to risk your funds and it doesn't matter what happens after, you make decisions with what you know at the time.