Financials and Oil continue to monopolize the focus of the market. However, today the Financials news is more upbeat as news bites come in about possible acquisitions and private investments. Oil is also down a little bit, which is giving the market a small tailwind early in the day. There isn't anything breathtaking about any of the news. It may be that traders are simply looking for any positive report to support their desire to be bullish this morning as a carryover from yesterday's resilience.
Look for a test of the bottom side of the Wedge from the SPX and Dow this morning, that will probably be the first battle zone. Then it will be a battle to see if the Bulls can push the market into a strong closing today. I'm not looking for a huge bullish day today and I would be cautious of the diagonal resistance line on the Wedges. Nevertheless, traders are making a bit of a bullish push after Thursday's resilience, which is interesting given the pop in oil prices yesterday.
Market Wrap: the major indexes confirmed bounces today and the Dow and the SPX came back to test the bottom side of the Wedge. Oil sold off in a fairly dramatic one-day reversal considering it broke out just yesterday. So if oil keeps on dropping back in to the $112 - $112.50 area on Monday then the Market will probably keep moving up. A drop in oil to $110 would probably give the market some tailwind to move near the previous swing high, and a drop to the next support at $105 would probably get the market back to the previous swing high, and maybe even exceed it for a full swing.
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Dwight,
ReplyDeleteSold my SPY IC for .20 this morning on a .3 spread. My broker is probably still bleeding...
Guys,
ReplyDeleteI got into a FDX call around $82. My first profit target area is around $84, then the $87-88 zone.
Hi Gary,
ReplyDeleteDecided to wait till next week to see if ESRX confirms better.
Meanwhile, decided to nibble into some Oct $55 Calls based on this huge bullish engulfing candle now pushing above the 30day MA
Target: a conservative $57 intially. Stop at $49.78
Well done on your SpyCondor!
Oh those were NIHD calls by the way!
ReplyDeleteFrancis
Christina: nice conservative profit target on FDX. Oil at $112 - $112.50 probably gets you to the 84 area. Oil at $110 probably gets you to the 86 area. And oil at $105 probably gets you to the 88 area.
ReplyDelete