My plan to short SPX did not come true as it did not go below 980.
Instead, SPX rebounded and went on to set new high for the year.
As per the chart discussion on 19 August, SPX is now inside the Weekly kumo and poised to break through it.
The levels to watch is 1053 and 1070.
Previously, it was highlighted that SOHU is forming a symmetrical triangle (many thanks to GR for pointing it out)
And as with symmetrical triangles, there is a chance that it can break out either way.
For me, I took a bet and Short an Iron Condor on SOHU. My beliefs was that it will remain at the same level until expiration.
All went well until Monday when the price breaks through the previous week high and stay above the previous week lows as well.
That should have been my first sign. Unfortunately for me, I was already off to bed sleeping (thinking that it will remain within my range).
Needless to say, on Tuesday, the price continue to surge upward on opening, and I see a fair amount of my profits from the Iron Condor eroded.
I still make a tiny profit from it but it is painful to see 3/4 of the profits being wiped out.
On hindsight, I should have closed off the position on last Friday when it dipped back into the ‘triangle’.
