Historical surveys suggest that the odds are good for a bounce off this morning’s gap down. We will get long small here via some futures – though of course long stock or even small size options would work as well.
We are looking to see the ES futures and SPX cash close near 1292 today, and we’ll set our stops somewhere around the 1265 area. Note that if we don’t start to see positive price action by 10:30-11:00AM EST, we will probably just scratch this trade.
This is a bonus trade and, as always, will not be autotraded, is not for the faint of heart, etc. etc.