SPX went from 1839.03 to 1836.25 this week for a negligible 0.15% loss. The GTC order on SPY that I left never got triggered due to this market going no where.
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McClellan: +136 (neutral)
72% of stocks are trading above their 20 Day Moving Average (overbought)
We are not extremely overbought, but we are very close to that point. Due to this reason I believe the up side this week is limited as a 1% push higher would take this market to extremely overbought conditions. Selling Out of the money Calls at that point would be my way to go.
RUT 940/950 Bull Put Spread Very comfortable and way out of the money. Nothing to do here.
SPY 159/161 Bull Put Spread Also very comfortable and way out of the money.
March is the only month where I currently hold positions. And both are very safe. The trading stress level is down to its lowest mark this year.
Action plan for the week
I will enter the first April position this week. My candidate right now is the SPX 1660/1665/1920/1925 Iron Condor, and I would like a credit of 0.80 or better. If I have a hard time getting filled, I might try RUT 1010/1020/1250/1260 for 1.30 credit or better. These strike prices may change slightly if the market moves significantly or if I don't get my fill on Monday.
Also, if we go to extreme overbought conditions this week, I might sell an SPY 191/193 Call spread in the March expiration cycle. I wouldn't enter that position for less than 0.15 credit though.
As for managing the existing positions, there really is nothing to do as they look very safe.
Monday: European CPI
Tuesday: US Consumer confidence
Wednesday: New Home Sales
Thursday: Durable Goods orders, Initial Jobless claims, Fed.Chair Yellen testifies.
Friday: GDP, Chicago PMI, Pending Home Sales and Chinese Manufacturing PMI
Good luck this week folks!
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