Yesterday's multiple exiting and entering in positions is due to one minor event that kept me away from my desk for the first 15 minutes of trading. It caused me initially to miss my planned entry at ES 1271.5 and to buy much higher (1274.75). I then tried to adjust but I just could not get away without a loss.
The total put/call ratio is still oversold:
This suggests I should keep my long position until I see at least a big bullish spike. As soon as my target is reached today, I will check out the cpc intraday reading and cover only if I see the spike. I think the market will reach at least the recent highs next week but there will also be a steep drop at the close today or on Monday as the bears will try to sell in the wake of the recent big decline.
Here is in more detail why my target is at SPX 1286.5:
This kind of analysis is inspired from Carl Futia's blog.
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