If we are using SPY as our view of the overall market, it has to be put into context with what the VIX is doing. The VIX is up +3%, traders are taking a cautious start to the week, the VIX is still trending downwards. Without any real conviction in either direction, I will be flat for today until I see a better opportunity to participate.
| May 4th, 2020, SPY S1 280 R1 295 |
With a high VIX/volatility, it makes finding cheap options to trade damn near impossible, not to mention a lot more risk to capital. It's a clear sign to me not to force any trades for the sake of being in a trade. It's 1120am in NYC, in today's choppy market conditions, I am content to call this day an early wrap. I will be back in the morning looking for an opportunity to trade.
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| VIX May 4th, 2020 |
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