You have to chop a leg, I would never hold a long straddle for more than a day. This just lets you be positioned before the market picks its direction, short bias for today.
If it wasn't 1/2 time on feel good Friday, I would start scaling in shorts into close. One more pop is in the cards me thinks, and then it's fair game. My trades have turned to the short side, meaning sell rallies from here. BTW, today is S&P quarterly rebalance (effective after the close). The standout is FNM and FRE are outta there! How's that for perfect timing, 5 days prior to the quarterly rebalance. Coincidence Im sure. Good, consistent, trading to all Osorico EDIT: a correction regarding SP quarterly rebalance... effective date is 9/19, at the close based on info released today. http://www2.standardandpoors.com/portal/site/sp/en/us/page.article_fa/2,3,1,0,1204839197231.html Sorry for the confusion.
FWIW - Some relationships are off like you said. Perhaps just the VIX and SPX relationship is off. Normally VIX goes down when the market goes up...but the market has been quite volatile this week even though we've closed 3 out of 4 days higher and possibly today as well.
I've been working on my intraday trading strategy. Here is my first live trade posted here on ET / ES journal. Long 45.50 Stop 43.50 Target 55.50 5:1 RR Edit: I'm using some MA crossovers, and no V they are not what you use if that's what you are thinking. Edit2: Stop moved to BE +.25 (2:22PM EST) Edit3: Stopped out +.25 (to cover commissions) (2:29PM EST)
2:15pm EST My last trade of the day/week S 2 YM @11364 Stop @11384 No specific target... looking @11285 and below. :eek: Osorico EDIT: stop adjust @11374 EDIT: stopped. Nice and quick, 5mins. -10x2, and done for the day/week. Osorico
Re entry Long 44.75 Stop 43.50 Target 55.50 8:1 RR Edit: Stop to BE +.25 (2:40PM EST) Edit2: Stop to 47.00 +2.25 (2:45PM EST) Edit3: Exit here at 50.50 on lack of strength +5.75 (2:55PM EST) Edit4: Strength basically shows up 10 secs later...target would have been hit! Still nice to have that winner at the end. Have a good weekend all!
Trade on long...but in the back of my mind I can't help but think that 'they' want the market to close up for the day and week.