SPY gapped up on the good economic report Friday morning and did a very slow climb to 384 and the finish at 385 in the final hour. We now have two gaps below us that remain unfilled. Premarket fills don't count. Not really something to be happy about if you're a bull.
SPY met my bullish price target of 384 and I said I would go deep in the money calls at 385 instead of 384 just to be a little safer. Since it met my price targets, I have no choice but to be bullish, but I haven't opened a position yet (read last paragraph).
On Thursday I banked very nicely catching calls at 371.3, essentially right at the weekly bottom, and closed them at exactly 378. On Friday I slammed puts right at open (price was 382.95 or 383.05) and when SPY rose back up after the dip I closed those out for a tiny loss of $500. I didn't open another trade and just waited to see how the day finished.
Monday open should tell us more about where this is truly headed. If we gap up it's bullish but you will get a pullback for an entry.
Why hesitate to open longs? There are a few things that should make it difficult to be bullish here. Firstly, as I mentioned, we have two gaps right below us. First one at 379 and 366. Two above us at 390 and 400. Secondly, TSLA, ARKK, AAPL, MSFT are all lagging behind. TSLA especially weak, it has gone no where in the past two days despite the run up. Thirdly, SPY price action is very weak, it runs out of steam way to fast. When we go down we plummet with no hesitation, when we go up it's like watching sloth climb a tree.
TLDR; SPY is going up but not showing strength. Other tech names are lagging behind in this move. Bullish targets met so I will look for an entry in September/October calls next week
SPY met my bullish price target of 384 and I said I would go deep in the money calls at 385 instead of 384 just to be a little safer. Since it met my price targets, I have no choice but to be bullish, but I haven't opened a position yet (read last paragraph).
On Thursday I banked very nicely catching calls at 371.3, essentially right at the weekly bottom, and closed them at exactly 378. On Friday I slammed puts right at open (price was 382.95 or 383.05) and when SPY rose back up after the dip I closed those out for a tiny loss of $500. I didn't open another trade and just waited to see how the day finished.
Monday open should tell us more about where this is truly headed. If we gap up it's bullish but you will get a pullback for an entry.
Why hesitate to open longs? There are a few things that should make it difficult to be bullish here. Firstly, as I mentioned, we have two gaps right below us. First one at 379 and 366. Two above us at 390 and 400. Secondly, TSLA, ARKK, AAPL, MSFT are all lagging behind. TSLA especially weak, it has gone no where in the past two days despite the run up. Thirdly, SPY price action is very weak, it runs out of steam way to fast. When we go down we plummet with no hesitation, when we go up it's like watching sloth climb a tree.
TLDR; SPY is going up but not showing strength. Other tech names are lagging behind in this move. Bullish targets met so I will look for an entry in September/October calls next week
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.