August 24, 2017

Pay Close Attention to These Few Notable Areas

The short-term reprieve finally came and now we are back in a short-term oversold state.

The pullback today gave all of our positions some breathing room, including our SPY 188/190 bear call spread. Our recent trades for April expiration look very good as well.

Over the next week or so I will be placing a few iron condor trades, so subscribers stay tuned. With the recent advance in the VIX, there is some decent premium out there in the major market benchmark ETFs. If the VIX can push towards towards 17 – 18 or higher we can really widen out our ranges and bring in some decent premium at the same time.

Another ETF I’m watching right now is DBA, the agriculture ETF has skyrocketed since the beginning of February without  pause. Is 16% in just over a month enough to classify the move as parabolic? I’m not so sure, but I do think the ETF is worth watching for a potential trade. The Russian ETF RSX is another that is worth watching for a short-term trade.

But, what I’m really watching is the trendline for IWM. The double top in the S&P 500 and the overhead resistance around $118.50 are very important areas to watch. If IWM remains below the $118.50 mark for a few more days I think we could see a decent pullback over the next few weeks. For what it is worth, the end of March is historically very weak. Will we witness history repeat itself again this year? Only time will tell.

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