After I posted my commentary very early this morning the US House passed the bill undoing tax increases for 99% of American Households giving a victory to President Obama. The vote was carried by 257/167 after a tension filled night as Republicans balked at the bipartisan Senate Bill. I decided to post an update on my trading plans following such a significant event.
March S&P 500
The March S&P gapped up through my 1435/1440 sell area and I have gone short in small at 1447. I will leave a 1453 stop on this position. The same Gap up scenario happened on the first trading day in 2012 and it took four months for this Gap to be filled. It is amazing the volatility as we have gone from the bottom of the Bollinger Band to the top of the Band in 48 hours. The only difference here today is the Williams Index is still on a buy. I will look to take profit on this short position from 1435/1440 and if I am taken out of this position for a profit or loss I am going to stand aside.
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