Markets down today. Eco-Comical Entertainment on TV.

I personally dont know what the markets will do and business news are another sort of entertainment. There is very little valid information in all what is said by paid "Economic Experts" or "Degree Holders". If you listen to them carefully and over time you will have noticed that they contradict themselves all the time. Also, they try to sell you random events as a coherent line of causalities. Their opinion is paid as entertainment.

Now when they say the markets are up amid great Earning data it is a wrong causality. Why? It is true that great earnings were pronounced end of April, AAPL, TSM and others but those stocks were down even though they had great earning reports. The market was up all over all but not with some great stocks I am watching. 

Then now we had earnings and they were great, too, and beyond expectations and the market took a dive! So what is it now? It is just noise in the background. People getting paid for entertaining the crowed and keep you spending.

The market is unpredictable. Thats why I do not predict market directions for the most part but I can tell you where the market "probably" will not be within a certain amount of time. I sell option spread trades.

Today the market dipped. Well, I am not so concerned about the dipping but the rate of it. I had two positions in the "Be Alerted Zone". Yes they were loosing money. But since we have our mechanics in place we will handle it if we have to.

We can see the red candle of the QQQ. What does it mean to my Iron Condors?

The SHORT PUTS closer to the money gaining value at a bigger rate than the LONG PUTS further OTM. My PUT Wing becomes more expensive and I will have to pay more for the short put to close the trade.

At the same time the SHORT CALL is losing faster on value than the PUTs are gaining and the LONG CALL further OTM even faster. This creates a negative balance in the position if I had to buy it back before expiration. If it doesnt hit the Strike before Expiration the position will simply disappear and I keep the Credit. If it threatens to hit the Strikes we have our mechanics in place. 

At the end of the day it calmed down again and we will see another day. The pictured RED CANDLE retreated half way and QQQ fell by 6 Dollars net. If this goes on for another 3 days I have to react. Until then probably not.