SPX and Some Volatility

It really feels and looks like we have made a solid turn in the market, but we still have a few hurdles in our sights to get through. In my opinion we need to see a market that can make a higher high above the 1,150 level. If we cannot make it above that level we could be in the midst of a higher low short covering rally. If that is the case we will find resistance at the 50 day moving average on the $SPX. As we approach the 50 day moving average keep your eye on the $VIX for indication of any push higher in implied volatility.

Income trading this month was tougher than normal, and I had some trouble but nothing too bad. It’s not the last time the market and volatility go crazy while income trades are set. As for March trades I have set everything I could, except my normal iron butterfly position. Normally I look for certain criteria like probability of profit, price, standard deviation etc., but the SPX did not give me what I normally look for. I will give it 2 more days and if my criteria are not hit than I will skip that trade this month.