SPY pushed up hard today, 55m momentum indicators are pushing up hard on the overbought scale, Volume on the day was light, there was not a lot of resistance from the bears. We should be turning over lower tomorrow sometime. The best case scanario would be a higher open and a sell off throughout the day. If we get a higher open, buy some puts. 85$ June puts would be the best play, with the most liquidity.
Cash21
Monday, May 18, 2009
Friday, May 15, 2009
Hold those puts until $spy 87
We hit the 90 target on the spiders today, if you bought puts it should be a pretty safe play to hold them until the 87.5 level. There is definitely a change in momentum over the last couple of days, today you would have expected 100+ up day on the Dow after all of the selling this week, but the Dow could only eke out a measly 45 points. This to me is bearish, and we should see more down side.
With out a doubt, the bulls are going to step back into the market with force at some point, the question is, will they be able to take it to new highs or not. I am playing this sell off, but I am not going to get uber-bearish until we put in a lower high, and a lower low.
There will be some charts coming to my blog soon, I know, you cant wait.
Cash21
With out a doubt, the bulls are going to step back into the market with force at some point, the question is, will they be able to take it to new highs or not. I am playing this sell off, but I am not going to get uber-bearish until we put in a lower high, and a lower low.
There will be some charts coming to my blog soon, I know, you cant wait.
Cash21
Thursday, May 14, 2009
Looking for $spy to hit resistance at 90
Spiders are looking to hit some restistance around the 90 level. This would be a safe level to enter into some June puts. STAY away from the May options. Stop loss at around 91, purchase the 85 OTM puts.
My leaning is to the bullish side, I am seeing the U.S. Treasury market hitting some resistance and about to turn lower, and that should cause stocks and commodities to rally just purely by default with those dollars looking for a place to go.
My target for this counter trend rally remains at around the 10000dow and 1050spx. The banks should be able to manufacture earnings for another quarter and that should allow all of the liars and charlatan's on the media to keep this thing going. The big money will be made in the last quarter of the year on Spider options, almost a repeat of last year.
Cash21
My leaning is to the bullish side, I am seeing the U.S. Treasury market hitting some resistance and about to turn lower, and that should cause stocks and commodities to rally just purely by default with those dollars looking for a place to go.
My target for this counter trend rally remains at around the 10000dow and 1050spx. The banks should be able to manufacture earnings for another quarter and that should allow all of the liars and charlatan's on the media to keep this thing going. The big money will be made in the last quarter of the year on Spider options, almost a repeat of last year.
Cash21
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