Disclaimer
This is for informational purposes only.
Discussion
I was too trigger happy on the short side yesterday. As I wrote this morning I think a pullback is needed before the final blow off to 4600/4700 (likely catalyzed by Waller this evening), but in the meantime I’m bracing for the October puts position to fall materially today on bullish China stimulus rumors and soft PPI data.
I trust McCullough’s short term market signals, and in conjunction with my read of the market yesterday I thought there was a high probability shot at downside today and into Friday, but that just may not be the case. I’ll see how things trade today, but my finger is on the trigger to sell out of the puts if need be, especially if the VOL complex shows signs of underpinning a substantial move higher into the weekend.