The stock market volatility remains at elevated levels, with the indices trading higher this morning. Futures are approaching the upper range of Tuesday price action in early trading as a short-covering rally takes hold.
We’ll reduce hedges and collect some premiums from covered calls.
SPY and the 200d
Price action is consolidating at the 200d (304.56) with pre-market activity firmly above 307.20 this morning. The expected move for the week is overhead resistance for now at (314.24), inside of Fibonacci targets discussed on Monday and Tuesday.
RSI has been oversold and appears to be improving. Any further improvement suggests buying could continue without exhaustion. It also appears that momentum (MACD histogram) will continue to shift, resulting in capitulation this week.
With the VIX/TNX ratio at historic highs and breadth improving, the outlook for bulls is looking very bright this morning.
Extremes will revert to mean. Price action seems set to snapback.
Futures are at highs and steadily improving. S&P 500 ES (+74.50). The 10yr Treasury yield is at 1.00%, so where will you put money to work? Hint: It starts and ends with the letter “S.”
Join us today in the trading room for our LIVESTREAM broadcast
during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.