Today's first post Italian referendum trading day turned into a bullish celebration for the Euro! Go figure.... The Dow closed at an all-time high. Seasonally, today is generally a very bullish day. Accounting for that, on Friday, I took off the Dec09 RUT 1345/1355 call spread for a debit of $1.15 affording us about 50% of the total profit.
Put/Call ratios are falling and the total Put/Call ratio fell below 0.90 again recently, so market are again bullish in terms of sentiment. Volatility fell today, but the SKEW did not move much. The RUT bounced back the most today, and the NDX was up 0.87% also. The NDX looks the weakest of all the indexes, as it never made a new high and has strong resistance around 4900.
Seasonally, the next two trading days are weak, after today's bullish day, so I put on a 20 point wide Dec16 NDX 4865/4885 call spread for $3.65. My plan is to cut this off after a couple days of weakness.
