RUT Update 4-14

This is what "SnapTrading" is all about... another day to sit on your hands and do nothing.  Sort of, anyway.  As you can see, things are perfectly centered, deltas are nicely flat, and thing look great.  Today I did add one thing to the trade... some long calls.  As the market was plummeting this morning, I was able to pick up some hedge calls very cheap, so I sacrificed a little profit to cover myself in the event of a hard rally.  Thus, the sharp upward white line on the right side of the graph.

One of the peculiar things today was the behavior of the RVX.  It's odd to see the RUT getting slammed, down >3%, and see the RVX barely move.  Apparently the demand for hedges and implied volatility is not taking off the with the sharp moves, although it's already pretty high.

Interestingly, it still lies right in the middle of the range.  I'm not really sure where it goes from here, but let me share one other chart with you that I think it relevant.  Below is a daily chart of the RUT:

Take a good look at the multi-month channel that has formed.  The last couple of days have just touched the upper end of the channel and formed a nice evening star pattern.  Who knows where it will go, but odds are the RUT will head back into this channel.  I'll be keeping an eye on it to go lower, at least for the next few days.  But no matter, I'm still set up for either direction.

Good Trading...