Good Morning. Time to trade the monthly credit spread:
- 200/50-day moving average is down trending.
- The 20/5-day moving average is down trending,
- Charts-Downward flagging. Remember flags often (62-68 percent of the time), and continue in the direction, they were going. So, may not be a bottom. Maybe wedging.
- We are at 1700 support. a significant one from the past. If breaks, we are going down to 1650.
- Resistance at 1750. 1800. Approx.
- Candles. hammers, between 1710 and 1650.
- Overnights. choppy. maybe a slight uptrend.
Looking at 1300/1250 50 dollars spread for 1.50 and 2010/2020 for 30 cents.
11am update. Positions: 2020/2030 for 30 cents. 1300/1250 for 1.50.
PS remember the top and bottom dollar values much match for best ROI. Therefore if you 1 50 buck contract that is 5000 dollar value, therefore, you need 5 10-dollar contracts on the other side (5 times, 10 dollars, times the 100 shares). If u do not understand that, don’t trade.