Well Traders, what a NUTTY day today. Actually, the last three days. Today, the $NDX started down over $35 points bottoming out at $1,717 in the early morning before making a tremendous comeback, going positive for a short while before falling back to close down $8 at $1,753.45.So what does this all mean? Well, for one, my "support area" highlighted in gray, though pierced three times, has not closed below yet. That's great for my trade; my identified support is acting just like that, supporting the trade from falling through. So while it has acted like a safety net for now, it may be just a speed bump slowing the index from its eventual fall. How long this may last I am not sure, but at over $100 points to the bottom, and the market craziness seeming to abate, it looks like I may yet again close with some solid returns. We'll just have to wait and see.
The MACD and STO are now getting to a point that they should begin to bottom out around here and head up again, which would basically wrap up anothger successful Iron Condor. It may also give me an opportunity to "leg in" to my April trade. What I mean by that, is let the $NDX climb to a peak, then buy my Bear Call which may be a little more expensive, then wait for the index to fall and bottom, then close the Condor by buying the Bull Put. Basically I am entering the Iron Condor at two separate times then simultaneously. That should be a little more lucrative.
Happy Trading!
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