This week the SPX index went from 2084.11 to 2117.69 for a 1.61% gain. The market is now up 2.86% year to date. I entered the first position of the June expiration cycle ending a drought of 35 days without entering new trades. It has been a quiet year so far and hopefully it will continue to be so.
Market conditions
(Click on image to enlarge)
Stochastics: 89 (overbought)
McClellan: +39 (neutral)
Stocks above their 20 Day Moving Average: 60% (neutral)
No man's land territory and the long term uptrend channel is still in play. I will not sell Credit spreads until the market reaches an extreme. Obviously the overbought extreme is closer, we'll see if it happens. I want to see SPX around 2150 for me to sell Credit Call spreads on that index.
I currently hold no positions on the SPX, so today it makes sense to show you a chart of RUT and the support/resistance areas I am looking at.
(Click on image to enlarge)
May positions
RUT 1100/1110/1330/1340 unbalanced Iron Condor
3weeks to expiration, 90% probability of success. I'm not concerned with this position. It won't need adjustments this week.
June positions
RUT 1130/1140/1340/1350 unbalanced Iron Condor
This is the new position in the portfolio discussed two days ago, so nothing new to say here. Lots of baby-sitting ahead.
Action plan for the week
My two RUT positions are healthy and they won't need my attention for now.
As for new trades, I want to sell May SPX Credit Call spreads above 2205. For that I need about a 40 point rally on SPX from current levels. If this doesn't happen, then I will move my focus to June where I would like to sell Credit Call spreads above 2230. This can be achieved with a more realistic 30 point rally this week. So, SPX around 2150 will get me interested.
If the market stays sideways or goes down, I won't add new positions.
Economic Calendar
Tuesday: US Consumer confidence
Wednesday: US GDP and Pending Home Sales
Thursday: European CPI, Germany Unemployment, China's Manufacturing PMI
Friday: ISM Manufacturing PMI, Michigan Consumer Sentiment
Good luck this week folks!
Check out 2015 Track record
Market conditions
(Click on image to enlarge)
McClellan: +39 (neutral)
Stocks above their 20 Day Moving Average: 60% (neutral)
No man's land territory and the long term uptrend channel is still in play. I will not sell Credit spreads until the market reaches an extreme. Obviously the overbought extreme is closer, we'll see if it happens. I want to see SPX around 2150 for me to sell Credit Call spreads on that index.
I currently hold no positions on the SPX, so today it makes sense to show you a chart of RUT and the support/resistance areas I am looking at.
(Click on image to enlarge)
May positions
RUT 1100/1110/1330/1340 unbalanced Iron Condor
3weeks to expiration, 90% probability of success. I'm not concerned with this position. It won't need adjustments this week.
June positions
RUT 1130/1140/1340/1350 unbalanced Iron Condor
This is the new position in the portfolio discussed two days ago, so nothing new to say here. Lots of baby-sitting ahead.
Action plan for the week
My two RUT positions are healthy and they won't need my attention for now.
As for new trades, I want to sell May SPX Credit Call spreads above 2205. For that I need about a 40 point rally on SPX from current levels. If this doesn't happen, then I will move my focus to June where I would like to sell Credit Call spreads above 2230. This can be achieved with a more realistic 30 point rally this week. So, SPX around 2150 will get me interested.
If the market stays sideways or goes down, I won't add new positions.
Economic Calendar
Tuesday: US Consumer confidence
Wednesday: US GDP and Pending Home Sales
Thursday: European CPI, Germany Unemployment, China's Manufacturing PMI
Friday: ISM Manufacturing PMI, Michigan Consumer Sentiment
Good luck this week folks!
Check out 2015 Track record
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