c505218304b50c59c3659f6dda43bae7-links-0–>Today’s market action was up as we expected. Though we did get some unexpected market action over the weekend – which is why it’s important to stay calm when underwater.
What was a bit of a surprise was the weekend gap down when there was news that oil was down 6%. Of course, oil ended up rallying back to where it was, but when the news came out Sunday night, the S&P futures were down all and trended down overnight to touch 2059 — which was support. Notice that this wave 4 does not overlap the initial wave 1 — and found support at the top of wave b.
The fact that it reacted strongly from 2059 towards 2072 before the market open – I think – was a sign that we are still on track to completing the 5th wave up.
And indeed, that is what happened.
Last Thursday, we entered into two trades:
While not the perfect entry, we bought last Thursday @ 2075ES and sold today at 2087ES for a gain of 12 ES points. Since each E-mini point = $50, that’s $50 * 12 = $600 for the futures trade.
Meanwhile, the options trade we also exited for $370 gain. Altogether, it was $600 + $370 = $970 in gains.