SPI200 Commentary Follow or Fade! SPI continued its whippy range...

SPI200 Commentary

Follow or Fade!

SPI continued its whippy range bound conditions Monday as it tested support and resistance a few times before lunch. The range got smaller into the close and overnight went sideways again then closed around mid range. Its a case of buy the dips and sell the rips on the SPI at the moment as the overall sideways ranges increase their grip strength. We have XJO options expiry this Thursday morning so we could see a push towards the outer end of the ranges soon. This weeks XJO expiry does not coincide with SPI expiry so from experience its easier for the big end of town to push the opening print in either direction. This means that with vol so low it may be good to buy some cheap out of the money options just outside the recent ranges for a multi bag trade. Of course since the reward is high on this type of trade the risk is high also so dont go all in. We should see more range trading today so stay nimble. For todays trading I am looking to buy dips around 5680 and sell rallies around 5720