Above is a picture of the SPY. I am switching to the SPY because I lost more than I should have this week due to the SPY having more risk than the portfolio allows. By switching to the XLF I am able to manage this account correctly according to my rules. I will post a chart of the XLF on a weekly basis as well as this chart just to keep tracking them together.
Friday’s close on the daily chart indicated to get short the SPY (Conditional Change 329.27). I had rolled the Calendar trade I was doing earlier that morning and then closed it so I was hit with dat trading rules. I am conducting an experiment to take a small account of $3,250.00 and see how much we can pull in a year. So far the account has increased $240.00 which is a 7.4% increase.
Feb 18 2020 328 Call 1 Contract Sell $5.08
Feb 18 2020 328 Put 1 Contract Buy $3.89
Feb 18 2020 337 Call 1 Contract Buy $.31
/ES S&P 500
This area may give it up eventually. I am seeing this as an area for a pull back. I am still out of this for the long term. My daily charts said to go long which I would still be if I had stayed with the chart. Still long the XLU. Looks like it is running out of gas for the up move. I hope it has a small pull back and then goes again. We shall see.
Pretty typical move below the resistance. Look for a retest.
This is not a happy chart. It hit resistance and Iran snubs the big dogs. See what happens when it hits the 34 area. I say it is going to get real tight.
Gold is looking to find resistance. Let’s see if the last high will be the swing high. Watch as it pulls back into one of the fib levels.
Is this the Santa Clause Rally? Money is going into the technology and Finance sectors. The retail sector is probably the worse of the major sectors I follow. The overall market is very bullish thanks to the Fridays jobs report. With technology leading the charge I feel we are in for more upside. In the last post I noted the 1773 area is the level to look for a bounce and that is close to what happened. Going forward I think the most bullish scenario plays out which is a move to 1830 then to 1860 by the end of the month. As far as my swing trades go I am long with risk ADI and LLY. I picked up ADI this week. Long with no risk I have BAC, PRU and XLE. In summary Santa Clause Rally yes but not on the back of retail. Have a great week of trading.
EL Stop 115.00 Target 85.33
Getting into the following trades this morning…
OC PUT Stop 29.86 Target 23.19
MCK PUT Stop 82.18 Target 73.38
NE PUT Stop 34.00 Target 27.64
The market this morning is going up due to the news. I am not going to get into the trades this morning that I set up last night.
I looked at two trades this morning. URBN and ALXN Pattern is a Pennant. The setup looks good but I cant get a 2:1. The targets are to low for my taste. Besides I think the market is going to turn down today.