Put/call is 2.07 in the first half hour and VIX is falling to a level of 41.66, down 5.07 on the day. Falling VIX at least implies that fear is subsiding from very extreme levels. This is bullish, short term.
Risk is very high now mathematically because the average 5 minute range on the Dow futures contracts for yesterday was a whopping 69 points! Compare this to an average closer to 15 points. Consequently, the volatility is over 4 TIMES HIGHER, which means we have to cut our trading size down to adjust for that.
In the case of stop placement, it means I should place my stops that much further away from the market in order to risk an equal dollar of capital.
Hence, I have used the same 1.00 pt stop in DIA, which really means I have a VERY CLOSE stop today.
Target remains 1.00 pt. Raise stop to breakeven after 30 minutes. Raise to breakeven plus 0.30 after 1 hour.
I will decide if reversing on the stop-out makes sense. I think it does, but let's watch what happens first.
10:08AM Now
DIA entry = 10:03AM open of 1 minute bar = 105.82. Stop = 104.82, Target = 106.82. Raise stop to 105.82 at 10:33AM. Raise stop to 106.12 at 11:03AM. That's pretty specific advice.
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