The put call ratio remains above 1.0 (a bullish sign), but let’s not forget about last week’s market action just yet. Both the Euro and S&P were quite choppy today and the SPY, DIA, QQQQ, and IWM all closed in a bearish inverted hammer candle formation. We will want to see a break over today’s highs.
The market has plenty of room to run at this point and both the bulls and bears can make a great case for which direction the move could be. While volatility does remain in the upper 20’s, we are sitting at a halfway point between prior highs and Thursday’s lows. This is a spot where we like to put on directional option positions. Oddly enough the DOW has been the strongest out of this latest downturn while the NASDAQ and…
At this point Sunday evening 6:00PM CST the markets are up 19 S&P points and 150 Dow points. Where we open on Monday morning will be everything. We have been forming a large triangle pattern on the hourly chart and have two major price points on the S&P. If we open up around 1030, a large gap up, investors may see this as a great buying opportunity, however if we gap down and open around 1095, investors may see this as a…
Lots to talk about today, at one point the /ES was moving 10 points in less than 10 seconds, enormous volume and volatility spiking into the 40s. Rather than spend your energy trying to find out the WHAT, let us focus on where to go from here, and what action can be taken to manage positions and how to execute new positions. The chart below says it all with the DOW spiking below 10,000 intraday, down nearly 1,000 points. The…
The market’s done it again, closing lower on stronger volume. The put call ratio closed the day above 1.0 therefore we are looking for a positive close on the day tomorrow. If you are trading futures and want a great alternative to TT or CQG you can check out Infinity Futures. Happy Cinco de Mayo!
The markets tumble along with the Euro, volume jumps, the VIX spikes, and oil drops. We are looking for volatility to remain higher for “an extended period of time” and this increased volatility is making a great environment for intraday trading, but what to do from here? The TRIN “Trader’s Index” aka. ARMS index, named after Richard Arms is an inverse relationship of market breadth, see this post for the calculation. When the TRIN closes ABOVE 2.0 the market has…
Where we stand on the S&P, roughly halfway between the last swing high and swing low on the daily charts, we are at a great place for putting on positions. For those placing option positions this allows for calls and puts to be bought at a relatively neutral point because we can either breakout to new highs, or break lows and fall down to the next support level. Either way picking relatively strong and relatively weak companies to trade and…