3 down days in a row for the S&P, surely not. Maybe my monitor is broken....... Nope! For the first time in 3 months the market is giving a little back. Hmmm, reminds me of a recent post: Onward & Upward to New Highs
Subscribers jumped into a new AAPL Iron Condor today using weekly options. The spread was quite juicy this morning when the Trade Alert was released. AAPL has peeled off about $20 lately, a pullback of of 5%+/-, and is finding support in the $340 area. The stock is solidly bouncing off the rising 50 Day Moving Average. The stock is consolidating and will most likely fill the chart gap back up to $350 in the coming weeks.
Subscribers holding the expiring SPY credit spread tomorrow should be feeling very comfortable. The position looks like it will expire with full profit of 8.11% in 7 days!
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Although the Dow & S&P experienced weakness today, both recovered from much deeper losses earlier in the day, the Nasdaq was actually quite strong. The VIX closed below 21 after spiking the last couple days. Oil hit $100 a barrel and rumors of Libyan leader Gaddafi was shot were thrown around.
Jobless claims fell to below 400k, printing at 391k, this morning and more importantly, the four-week moving average fell to its lowest level since mid-2008. Durable goods orders jumped 2.7% for January also boosted by aircraft orders. New home sales fell 12.6% for January as well.
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Today's trading was more about Libya than the economic data. Volume was high once again and a large doji was formed on the SPY chart today. A doji chart pattern indicates a large push / pull between buyers and sellers which ultimately ends in a compromise around the middle. This chart doji is not surprising as it is occurring at S&P 1300, where a support of a falling price would be expected.
I expect 2-sided trading action to continue in the short term. I anticipate a trading range of S&P 1280 to S&P 1320. However, a decent stand was made by the bulls today at S&P 1300 so we may consolidate here for a while first.
Stay tuned traders……….
Autotrade Fill Report
AAPL Iron Condor Spread
AutoTrade Broker Fill Status:
GlobalAutoTrade/Int. Brokers: Filled
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