After a slightly red day yesterday for all of the major indices, we are looking at a pretty good gap down for everything this morning. As we discussed in premarket chat and in this week's weekly video, the SPY had some major anchored vwap resistance in the 260 area that after a few days of being tested appears to have held as resistance. This morning it look like the SPY may open down below the 250 level, and it will be very important to see if it can regain this quickly or not. If it doesn't there is not a lot in the way of support below until the 225 to 230 area. Overall, we remain firmly in a bear market and as we have discussed, the rally we saw was a textbook bear market rally that was fueled by forced end of quarter fund buying. I will give the market plenty of time to settle in today and will likely focus more on day trades, but I would be potentially be interested in some put entries for a swing off of a failed rally.
Yesterday I bought to open FB puts, and it looks like those should pay off for us this morning. I will likely take a trim or two early and then barring any major rally hold a piece to see if it pushes down further. We should also be looking a bit better this morning on the $VIX calls that I am still holding. I would love to see that big spike in volatility, take profit, and then see volatility ease some more. Stay safe out there everyone!