Monday 27th of September

The S&P futures (ES) triggered stops in the Asian hours sending it up to a high of 1149.75.
However it was not able to get above that 1150 level that I have outlined a few times last weeks.
The open was at 1145 so that means the gap from 13th of May is actually filled now.
It traded lower on light volume and closed at 1137.75 on the lows for the day pretty much. The lack of volume signals to me that it was limited selling pressure on the day and we have to see expansion in the volume to the downside to really get a sell of lower.
Trading wise it was a slow day and I had to get long ES on the break higher in Asia, but sold a bit back when it broke back below 1144. I also closed the VIX options structure I had (long Nov 27.50 call and short Oct 30 call, 1x1 ratio) for a 12% gain.
I lost 6.5 points on the ES futures trading today, which is ok as I had to stay a bit long to hedge the short delta I have on the options portfolio since I have overweight of short calls at the moment.
However since the value of the portfolio rise when the S&P drops since I am short delta the portfolio in total rose by 0.25% on the day.
I made no adjustments to the options today.
Make sure to see the comments from Mr. TopStep regarding the walk away trade in this video:
http://mrtopstep.com/2010/09/27/mr-topstep-in-hd/

I agree with Mr. Topstep as basically as long as 1150 holds I expect a drive lower.
Remember that US nonfarm payrolls not out until next Friday.

That is all for now, have a great day