It is easy to point the finger at Greece as the culprit behind Monday’s mega sell-off, but it is impossible to deny that there has been an ongoing distribution among select US stock sectors for several months. Viewed from this perspective, yesterday’s price action among the major indices could simply mean the underlying weakness finally made it to the market’s surface. Regardless of what happens with Greece, the US market
Tag "trading setups"
I believe the SPDR Consumer Discretionary ETF (XLY) may be primed for another short put options strategy. Last week, the ETF went on to rally 0.6 percent. Thus, the premium earned selling weekly June 26th 77 puts was kept. Could this work again on XLY? To refresh, in our hypothetical example on June 1, June 5th weekly 76.50 calls were sold for $0.47. At expiration, the calls were in the
It’s Sunday night so it’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (or who is making them), I believe that it’s important to be aware of notable options activity as another indicator for directional bias. Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have. Unusual Options
The past few months have seen shares of the world’s largest company, Apple Inc. (AAPL) trade sideways in a 12 dollar pattern. A couple of months of consolidation is expected after a big run higher. However, the stock has been rangebound for 4 months, and as time marches on the possibility of a bigger (more volatile) move increases. Yesterday, I shared an important chart pattern for Apple (AAPL) on my blog. I’ve included it
The market started off the week with a bang mostly due to relief over the fact that the world did not end over the weekend in some kind of a Greek-induced Armageddon. Today was a more subdued trading session and most indices spent the day in a sideways range. However, there was ample strength among individual stocks, especially some of the widely followed momentum names – Facebook (FB), Amazon (AMZN),
One of the stocks I’ve been following closely from a “price” perspective is Yahoo! Inc. (YHOO). Yahoo stock has provided some nice price patterns for pure price guys like myself. Back in January, I made the case for YHOO going lower and offered some downside price targets. Today, I wanted to provide a quick update on where I think the YHOO is at. Looking at the chart below, you can see
Back in February, I posted that a major wave was nearing completion on Apple stock (AAPL). This was all about price action (wave patterns) and mathematics (Fibonacci relationships). It likely wasn’t very popular at the time – after all, Apple (AAPL) is an incredible company and the shares were on a tear at the time. Here’s an excerpt from that post: Shares of Apple Inc. (AAPL) have been very strong of late.
Last Thursday saw a powerful rally in stocks. Several indices went on to notch new records. The Nasdaq Composite surpassed its March 2000 intra-day high. The Russell 2000 small cap index broke out to a new high. Several others, including ETFs, broke out of recent ranges. The SPDR Consumer Discretionary ETF (XLY) belongs to the latter category. But will the breakout stick? For the past four months, XLY ($77.45) has been
It’s Sunday night so it’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as another indicator for directional bias. Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have. Unusual Options Activity: 10
Given tomorrow’s looming Fed announcement I expected a choppy and directionless trading day today as I thought traders would sit on their hands. Instead, the market showed surprising strength and made a broad push higher. The S&P 500 (SPX) gained some +0.5% although it ended the day short of the key resistance level at 2100 and just under its 50 day moving average. The Russell 2000 (RUT) continued to lead and