Live: Thursday, April 2, 2020

10:25 a.m. New York time

The S&P 500 futures continue to stair-step their way down, and I shall continue to hold my short bear call options spreads on SPY, which expire May 15.

Elliott wave analysis: With Intermediate wave 5 to the downside, Minor wave 1 ended yesterday (April 1) at 2434.25, a wave 2 correction to the upside ended this morning, in pre-market trading, at 2502.00, and the price has subsequently dropped in a Minor 3rd wave to below the end of the Minor 1st.

My strategy is to hold through Minor wave 3 and exit in Minor wave 5, if the timing of things permits it. Otherwise, I shall exit in Minor wave 3.

The first strategy, a Minor 5th exit, is also what I’ll use for my shares of SDS, an inverse exchange traded fund that moves the opposite of the SPY and at double the size of its movements.

By Tim Bovee, Portland, Oregon, April 2, 2020


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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