The Chinese government is pouring the equivalent of $586b into it's economy to try and stimulate growth. The news has markets up globally and pre-market futures up in the U.S. The bullish gap that we get at the open could take the Dow and SPX right into the highs from Thursday and the lows from Wednesday. The positive news may be enough to give the market a tailwind throughout the day.
If the SPX shoots right through 950 then it could still have another 10-15 points in a straight line. However, it won't surprise me to see the market fade the gap a little at the open and then take another shot into the 950 - 960 area on the SPX and the 9,200 - 9,300 area on the Dow.
I will keep an eye on the Bullish Watchlist for a couple of stock plays. It looks like Energy stocks will gap up at the open along with a number of other sectors. I'm still playing intra-day swings, and I still won't be surprised if the market tightens down a bit this week, but I have my resistance levels drawn and I'll keep playing it bullish as long as traders keep taking it up.
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Thanks to Dwight for all!
ReplyDeleteBetween his insights and the futures, that kept me from jumping in at the open and am patiently waiting to see if we get a bounce at support levels.
Good trading all!
Francis
Good call Francis!! I jumped in with the market ^ and it didn't last long. I have spend the morning making up for losses with puts-I am happy that I can make them up. I am up $5 now!!
ReplyDeleteYes, thanks to Dwight!!
Happy Trading!!
Margo
Good for you Margo, sounds like you're in control which is the main thing!
ReplyDeleteNibbled in on Dec $60 Calls for AMGN when it bounced off S1 levels of $57.70ish.
Target entry price is actually $60.72 being 25Cents above Thursday's candle.
But with stock showing strong support even with general market selling off today, I felt justified nibbling in early and buying more later if uptrend conirmed.
Boy, the SPY and DIA are really tight ranged as Dwight said.
Francis
The lows are holding from Friday, but will they hold up tomorrow? Anyone staying in puts overnight?
ReplyDeleteJoe
Francis-how did you do with AMGN? End of day what a quick rally? I guess this is the "new normal"
ReplyDeleteJoe-I did a call on DIA first thing and held it. I paid $6.20 at last look it was $4.60. Hoping it will go up tomorrow, if not, I will take loss and walk.
I am up $52 after this AM. Went in and out of SPY's all day.
I am finding out that I cannot look at more than 2 trades!!
I need 4 monitors!!
Margo
Dwight,
ReplyDeleteThanks for your market analysis and time searching charts. Too bad the market didn't get on board to the plus side for today. You certainly were accurate about the gap and fade(as usual), even with the China bogey!
Joe, and the other merry traders,
I bought the head fake on the 5s at around 10:25 CST and sold my held SPY put. I didn't think the SPY would actually drop down that close to support. Hindsight is so clear! My loss, $100 for the trade. Still, I didn't lose as much as I would have on Fri., it wasn't a day trade and it was only $100 (risk management). So, three positives after all.
After that, I decided to use my energies otherwise and didn't trade for the day's remainder. The result, crockpot stew!
Joe,
I'm guessing you're holding?
Francis,
Looks like AMGN paid off!
Margo,
Nicely done, switching gears!
With my Amgen calls, nibbled in 2 contracts today avg costing $3.11 so I'm at cost basically. The intention was to leg in a little on a low volume day with the S1 support level of $57.70 holding multiple times throughout the day and the last 5 minutes as you noticed saw a flurry of buying.
ReplyDeleteDid you see that last 5Min Candle on the SPY with $12.9m volume alone?!
Bit worried about your puts but who knows what other bogeys might surface between now and opening tomorrow?!
Well done all!
Francis
Francis,
ReplyDeleteIf you're talking to me about puts. I'm all out. When I said I "bought" into the headfake I meant I was tricked.
It's a new day tomorrow!
Francis,
ReplyDeleteNice job with Amgen. I hope it works out for you tomorrow! Guess it depends on what the market wants to do.
Margo,
Nice trading. I'm all outta daytrades until Thursday! So I'm being cautous and waiting for some signs to get in overnight.
Laurie,
Don't worry about the loss. I lost more than that on Friday and took out all my gains from earlier in the week. I kept moving my stop, which was completely stupid. Won't happen again... That's for sure.
I decided not to get in with puts, just wasn't feeling the price action at the end of the day with the high volume rally. However, we did see a dark cloud cover on the major indices with a bearish engulfing on the Nas on the dailys. If the lows from Thursday and Friday are broken I'm in puts.
Joe