Market Recap

The SPX closed at 1501.98 (5.88); The RUT lead the way down, closing at 896.91 (10.43). AAPL closed at 456.83 (1.44). Volatility rose by 7.59%. The early up move in SPX was betrayed by a simultaneous up move in the VIX. SPX peeked at 6:50 AM  and steadily descended into and after the FED announcement.

I took the opportunity presented by low volatility to buy long puts in RUT, producing a short Delta position. It has seemed the risk is to the downside. I’ve know this for several days; one never knows when the break down will begin. I’m only modestly short because it seems to me we may grind higher after any pullback. I must study the volatility landscape to determine the bets placed by the smart money. Also, the money flow monitor at Effective Volume has begun to show some exhaustion. Weekly 9 day calendars were bought by me as well. Difficult market to read; a difficult market to trade.

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