This is a follow up post on my previous RUT reading.
Following on my RUT reading, I decided to established a Vertical March Call Spread at 630/640
The rationale is that I have already ride on some profits from my Vertical March Put Spread at 570/580
If RUT does goes higher, I will suffer some losses on my [...]
I believe RUT provides a fairly good proxy to the risk appetite of the market.
When RUT starts to slow down on its advance, it is a sign that the broader market is perceiving it as more risky.
RUT and SPX stage a counter downtrend and rally yesterday, though not before they have to fight off a very down futures before the market opens.
So, is the reversal in play now?
Let’s look at the charts.
For the RUT, we can see that the rally is more substantial. However, it fails to break above the previous [...]