Volatile Day

Wow. 1% down at the open, then almost complete recovery, then back to lows, then recovery again. When the market opens lower I was scared that my analysis wrong, the recovery made me more optimistic, however second decline brought fear again. On the second recovery I was already exhausted...

We saw very volatile market over the last few sessions. Such big volatility is usually happened at the resistance levels when market tries to collect more bearish players and cut bullish traders.

Yesterday I was thinking about opening a position, however sharp drop down put me in the waiting mood. I was ready to open a trade only by the end of the session. I did not buy options. I think it's too risky to do it in such volatile market. Rather I have sold SPY naked puts (SFBWQ) at $1.20.

Let's see what tomorrow will bring us. Now, I'm more bullish by the following reasons:

S&P 500 and DJI indexes did not break recent low levels
The indicator still show that S&P 500 and DJI are oversold
The NASDAQ 100 has become a little bit oversold as well