Qs were back to hitting the pivots today, starting with an opening kiss of R1. This was another classic gap fade, as the market had turned down by the 6:38-6:42 time pivot and the TICK and the NYAD were both down slope. The Qs fell right to PP in the first 30 minutes and then a reaction bounce to the PP-R1 midline. . .where it basically stayed for the rest of day. The strength in the DOW was again skewed relative to the NAZ, but I believe this is just positioning ahead of the FED announcement tomorrow. I went back into the long EK trade. With earnings out tomorrow, this old dog has been showing some accumulation and I'd like to get a little piece of it..
Speaking of earnings, with volatility popping all over the place, here are 2 excellent posts on the use of back spreads in lieu of straddles or strangles in order to play earnings breakouts or breakdowns.