Wacky Wednesday!!

Well Traders, Wednesday was a wacky day. It seemed like it started with "irrational exhuberance" as the market soared in early morning trading. The Dow was up over triple digits at one point, and the NAZ was up over 30 points.

Then half-time came at 12:00 pm.

It was almost eerie watching the complete reversal of the markets. The Dow plunged to -30 points and the NAZ was down almost -20 at one point. That is a pretty huge swing in one day IMHO. The markets both ended up for the day when all was said and done, the Dow almost 11 points and the NAZ a little over 7 points.

So what does this mean for February's trade? Well, at one point, the $NDX broke through support at the $1,750 level and I was beginning to believe that we had possibly reached a peak and we were heading downhill. However, since the $NDX ended the day abovemy support area, technically, support has held. Combine that with the MACD and STO positions and the $NDX may have found a temporary bottom here.

Since the index seems to be somewhat sideways trending, which is a beautiful thing for an Iron Condor, February's trade looks to be a straight mathematical one, with maybe 125 to the top, and 150 to the bottom. I have two reasons for padding the bottom. First, the 30DMA is beginning to roll over, which means there may be some bias towards the index heading down, not up. Second, people sell faster than they buy, so the bottom pad helps me with any "panic sells."

I'll give you the Analysis Sheet for the Entry, Exits, Risk/Reward and Profit Potential later today.

Happy Trading!