Again the 1600 May call buyers seemed prudent. On the one hand, we have a couple of breakaway gaps below as that could signal a run to 1650 in the next couple of weeks. On the other we could have hit a short term high and we could spend the next 1-5 days back and filling. I would prefer the 2nd option since it will provide better trading opportunity but with Europe hinting at more easing and Ben continuing to punch the accelerator we have to keep an open mind. QQQ is a good example once it finally closed above 70. Could we have a super spike in the making as S&P finally broke above 1600? We just need to start passing out the Dow 15,000 party hats?
On a side note, Apple is set to distribute dividend on May 9th and seems like every value fund had piled into the stock post earnings.
The employment report has the market rockin’ this morning and there appears to be a very good chance that it will again close at a new high. I looked back at all other times since 2000 that ES closed at a 50-day high on an employment day. Read the rest of this entry »
After gapping down at the open on Wednesday and never filling the opening gap, ES gapped up this morning and has run higher without that filling. The study below examines other times ES posted an unfilled gap down one day and then an unfilled gap up the next. Read the rest of this entry »
Tuesday provided an interesting setup and a difficult trading decision. Unfortunately, I made the wrong one. Let’s review how it happened. First let’s look at the Odds Sheet as it stood near the close on Tuesday. Read the rest of this entry »
April marked the 6th month in a row that SPX has managed a positive close. I have seen many analysts suggest this means the market is overextended and due to correct in the coming months. So I decided to take a look for myself. I ran a study to examine past performance following 6 consecutive months of gains…. Read the rest of this entry »