Well we hit the target fade area and the smart thing todo was fade. Over the last week I put a few new trades on all with a downside bias. The only trade I have on right now that got adjusted was the monthly SPX butterfly. The SPX butterfly has some very simple rules and I typically adjust those rules to current market environments. This time my plan didn’t work out as planned, but all that means is I have to manage this trade a little longer. All my other positions have a neutral to bearish bias and I think that those trades really balance out my “bullish” deltas on my monthly SPX butterfly.
Looking at the chart is seems like we could potential retest the 1375 area, like I said in my last post the market could be looking at this as a buying opportunity. But I think over the next few trading days we test the 1375 area, so I’m staying short for now.