4th April 2010
The good news is that stocks continue to act like they have hit a ceiling, but the ceiling keeps getting a little higher. For now, those levels are 11,000 for the DJIA, 1200 for the SP 500, and 200 for the MNX. The bad news is that the down days are coming with more volume than the up days. There is no reason to be overly bullish or bearish at this time. Option traders continue to be best served with spread trades sell some premium to take advantage of time decay.
JD
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22nd March 2010
Last week the financial markets continued their slow march forward into new 52 week highs. The problem with this breakout was that it was not accompanied with a lot of volume. The SP 500 should go back and test support at the 1150 level, the DJIA at the 10,700 level, and the MNX at the 190 level.
When this happens, use it as an opportunity to place some new trades. If support holds, look to use bullish spreads to reduce your risk and improve your reward to risk ratio. If it does not hold, it will be a good opportunity for bearish credit spreads.
JD
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