August 17, 2017

Watching 1490 on the S&P

According to the Stock Trader’s Almanac Friday is bearish in the S&P with only 38.1% of the trading days closing higher.

Who knows what tomorrow will bring, the bulls and bears continue to play the tug of war and until the S&P can overtake the 1490 level with conviction I will continue to lean towards the bearish side over the short-term.

Again, I wholeheartedly agree with Kirk’s latest sentiment: Be defensive, hold lots of cash, don’t be complacent with your longs, protect your assets, and if you’re so inclined, look for strength to short. As for putting money to work on the long side, wake me up when we’re back to extreme oversold conditions again. I don’t plan one single buy until that point is reached. Such a tactic allowed me to survive and thrive in the past and I’m confident the same will hold true now. – Charles Kirk

Our Iron Condor position continues to look very good as the underlying SPX (S&P) is currently 6.8% below our short call strike and over 13% above our short put strike. While many services are sweating the recent move we are comfortably within our chosen range. Since we altered the strategy by choosing extra large ranges (and tweaking a few other guidelines) our strategy has had three consecutive winning expiration cycles and if all goes well over the next five trading days we could have our fourth.

I would like to remind you that space is limited in the SPX Iron Condor. However, if we do max out we will add you to our waiting list. Join now!

Overbought/Oversold for December 13, 2007

S&P (SPY) – 51.0 (neutral)

Russell 2000 (IWM) – 45.2 (neutral)

Dow (DIA) – 53.4 (neutral)

Nasdaq 100 (QQQQ) – 48.0 (neutral)

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