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McClellan: -100 (neutral)
34% of stocks above their 20 SMA (neutral)
Funny because we have two indicators close to oversold while the other one is overbought.
Anyways, to me, this is no man's land. For me, it's no time to enter credit spreads at this point. Just a personal preference. I'll wait for an extreme.
RUT 1050/1060/1260/1270 Iron Condor. 94% probability of success with 20 days to expiration. RUT hovering around the 1145 mark. Unlikely to threaten my short strikes this week.
RUT 980/990 Bull Put Spread. Probability of success 97%. Very comfortable spread at this moment. Will keep riding it for a while.
RUT 1815/1820/2065/2070 Iron Condor. Brand new positions just two days old. Nothing new here.
Action plan for the week
I feel very comfortable with the existing positions and they are very unlikely to be threatened this week. As for new positions I will wait for a market extreme, which according to the indicators I follow, is not there yet.
So, this is looking like one of those weeks where I do nothing. And I know that's bad for the blog. I don't get to write anything. It's bad for my twitter feed, I don't tweet new trades. But these are the types of weeks that I've come to love. I hate over-trading. I hate looking at charts every 5 minutes. I hate the stress that comes with it. I hate making the broker rich with commissions on top of commissions. I know, I know lately many people claim that being very active is the key to success (that's influenced by TastyTrade's mantra of trade small - trade often). Sorry, mentally it doesn't work like that for me. If I have three solid,comfortable to ride positions, there's no need to force anything else. No need for me to be on top of 20 different stocks, which for the most part will move in tandem with the rest of the market anyways.
Lots of news coming out this week, that could move the market, hopefully to an extreme.
Monday: US Pending Home Sales
Tuesday: CB Consumer Confidence
Wednesday: ADP NonFarm Employment change, GDP
Thursday: Europe CPI, Chinese Manufacturing PMI
Friday: Nonfarm Payrolls, Unemployment Rate, ISM Manufacturing PMI
Good luck this week my friends!
Check out 2014 Track Record