MARKET COMMENTARY
I had expected a halt of the crash and a bounce on Thursday but all these failed until Friday - a one-day delay. Yes, that one-day can be significant and would make someone make or break. Well, this is trading. There is no guarantee, only opportunity. Anyway, the rebound occurred at only the last hour of Friday. A wide swing of over 500 points - from roughly negative 270 points to a gain of 300 points - in just one minute! Unprecedented.
It is that moment of bullish rebound that set the bullish tone for the markets on Monday. Yes, we should have a strong rally on Monday. But the outcome of that rally in the early hours could dramatically change depending on the opening hours. If an over 300 points gain in first half hour occurs, we can expect a pullback later of the day. If it is more gradual, we can expect a more sustainable rally and consequently another bullish day on Tuesday.
If the rally is sustaining, we may find resistance at 10,000; otherwise, it would be 9,000. In either case, do expect the rally to be really short lived. The markets are still shaken as a result of the October 6-7 financial meltdown. We simply can’t find sufficient buyers to support the markets.
DJIA Daily Chart
The Russell moves in the same fashion as in the Dow. A rally is expected and could be stronger than the Dow because of the higher volatility presents in the RUT for some reasons. I marked the resistance at 600 but I think it may very well below that level before another sell-off.
RUT Daily Chart
I expect the Nasdaq to rally the strongest due the great volume of trading on Friday. Resistance is expected at 1450 if sustained; otherwise, any time.
NDX Daily Chart
STOCKS TO WATCH:
Bank and technology stocks - Technical Rebound
The call option did drop some 20percent on Monday close but it was not severe. Therefore, I held on for another day. I closed out on Tuesday for some 50percent profit 
Anyway, you are right. Have to be extra careful on this kind of trade.
The market rallied more than 10percent, everyone is happy. but i am not so, not because i shorted the market at this very oversold condition. in fact, i was right with this bounce. I spotted a bullish piercing pattern on C on Friday. Bought some straight Call at the close on Friday. But only realised that it is not a very wise move on Monday. VIX crash killed me! Actually, I understand that buying straight options during high VIX is indeed “stupid”. But I don’t expect that the impact is so significant. C rallied more than 10percent but my Call option is dropping
Mr. Foong, any advise on how to save this trade? In the future, what strategy would you advise during high VIX market…