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Futures (ES, NQ, GC, CL) – 28 June 2017

28 June 2017

Daily status of the futures of Gold (GC), WTI Crude (CL), Nasdaq 100 (NQ) and S&P 500 (ES)

Futures (ES, NQ, GC, CL) – 27 June 2017

27 June 2017

Daily status of the futures of Gold (GC), WTI Crude (CL), Nasdaq 100 (NQ) and S&P 500 (ES)

Futures (ES, NQ, GC, CL) – 23 June 17

23 June 2017

Daily status of the futures of Gold (GC), WTI Crude (CL), Nasdaq 100 (NQ) and S&P 500 (ES)

Options – 18 December 15 Monthly Income – Bull PUT on SPX

Update

14 December 2015

We closed this CALL credit spread and bought it back for $0.05. Overall, it was a small profit to be redeployed for the next trade.

8 December 2015

We sold a monthly CALL credit spread at 2135/2145 for $1.10. The total Return-on-Risk for this new trade is 1.10/8.90 = 12.36 % excluding transaction cost. The PUT credit spread was closed for $1.75.

27 November 2015

We sold a monthly PUT credit spread at 2015/2005 for $1.15. The total Return-on-Risk for this new trade is 1.15/8.85 = 13.00 % excluding transaction cost. Expiration is at 9:30 am, 18 December 2015 (EST)

Options – 21 August 15 Monthly Income – Bull PUT on SPX

Update

21 August 2015

This PUT credit spread expired worthless. The Settlement price was 2015.47.

13 July 2015

We sold a monthly PUT credit spread at 1980/1970 for $1.30. The total Return-on-Risk for this new trade is 1.30/8.70 = 14.94 % excluding transaction cost. Expiration is at 9:30 am, 21 August 2015 (EST)

Options – 17 July 15 Monthly Income – Bull PUT on SPX

Update

13 July 2015

We closed this trade by buying it back for $0.05. Option expiration is this coming Friday morning.

15 June 2015

We sold a monthly PUT credit spread at 1980/1970 for $1.30. The total Return-on-Risk for this new trade is 1.30/8.70 = 14.94 % excluding transaction cost. Expiration is at 9:30 am, 17 July 2015 (EST)

Options – 18 June 15 Monthly Income – Bear Call on SPX

Update

5 June 2015

We closed this trade by buying it back for $0.05. Option expiration is another 2 weeks away.

18 May 2015

We sold a monthly CALL credit spread at 2185/2195 for $1.05. The total Return-on-Risk for this new trade is 1.05/8.95 = 11.7 % excluding transaction cost. Expiration is at 9:30 am, 19 June 2015 (EST)

18 March 2016 – A bullish ending …. what’s ahead?

The week ended on a bullish note after the FOMC announcement on Wednesday. It was deemed to be market-friendly and the bulls took off. The market is reaching an overbought condition but will the bulls continue pushing upward or will the market trade sideways for the week ahead?

The Goldilock economy is conducive for the bulls and bears bears could be in hibernation for a while. Oil has been trending upward and is now trading above $40 a barrel. Gold continues to see buyers coming into the market. The ECB and the BOJ have negative interest rates and is printing more money in an effort to boost economic growth. China market is trending upward as well. The South American economy is a basket case as usual but they do not have much of an impact on the rest of the world economy.

Where are the potential problems? Greece has been written off as a perpetual basket case in Europe. The Italian economy could be the next black swan that could ‘surprised’ the market. Unlike the Greek economy, the Italian economy is much bigger and will not be easy to bail out.

Dow Transportation made big gains in pre-market trading and continued trading upward from market open. It range traded for the rest of the day and closed with a bullish Marubozu candle above its 200 SMA. Pivot momentum remains upward. Daily volumetric buying pressure is at 100%.

On the weekly chart, we have nine weeks of bullish candles and it closed on Friday with a big bullish Marubozu candle. This is the longest run of bullish candles for the last five years. It closed above the weekly 50 SMA. it is now trading at 13.2% below its peak. Weekly volumetric buying pressure is at 100%.

Dow Industrial made big gains in pre-market trading and range traded for the most part of the day. It grinded its way upward in late afternoon trading to close with a bullish Marubozu candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%.

On the weekly chart, it closed with a bullish Marubozu candle above its 50 SMA which is 4% below its peak. The Dow Industrial is in its monthly Squeeze.

Russell 2000 has not been as enthusiastic about the market as the other indices. It made big gain in pre-market trading and range traded for most part of the day and closed with a bullish Marubozu candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%.

On the weekly chart, it closed with a hammer candle above its 21 EMA and is now at 15.1% below its peak.

Nasdaq 100 range traded throughout the day and closed with a doji candle below its 200 SMA. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%.

On the weekly chart, it closed with a bullish hammer candle just below its 50 SMA and is 7.2% below its peak. The technology sector is lagging in this round of bullish action as it also did not sell-off as much in the beginning of the year.

S&P 500 made gains in pre-market trading and continued trading upwards in the morning session. It then range traded in the afternoon session and closed with a bullish Marubozu candle. Pivot momentum remains upward. Volumetric buying pressure is at 100%. The S&P 500 is in a monthly Squeeze.

On the weekly chart, it closed with a bullish Marubozu candle above its 50 SMA. It is now trading at 4.4% below its peak which was at 2134.72.

Commodities
Oil (/CL) futures closed for the week at $41.13 per barrel. Gold (/GC) futures is up at 1256.0 an ounce. Silver (SLV) ETF is up at 15.03. Oil is now trading above $40 a barrel and looks to have bottomed. Commodities and mining companies are generally doing well. The DBA ETF has been trading up a parabolic curve the last 3 weeks.

Bonds
Junk bonds ETF (HYG) closed at 82.40 and continues to trend upward. Bonds ETF (TLT) is at 129.06.

Currencies
USD/JPY is at 111.52 and has traded down for the week. The market has not been correlated to this currency pair for the past few weeks. The dollar index (/DX) is trending down which is good for the US economy and that is likely the reason for the bullish in the market. A weaker dollar is good for the export market. EUR/USD is not showing any direction for the past two months. It is at 1.1268.

Relative Strength – Sectors
On a monthly timeframe, SOXL, IYT, IWM and DIA ETFs have been outperforming the S&P 500.

Other sectors/ETFs showing strength are VEU, HYG, XLF, EWM, FXI, XLB, XLK, XLY, XLE, USO and DBA.

On a quarterly timeframe, the sectors outperforming the S&P 500 are IYT, XLI, HYG, EWM, XLB, XLE, SIL, XLK, XLP, GDX, DIA, XLU, DBA, SLV and GLD.

Biotech (IBB) ETFs is up at 251.34 which is at the other end of the chart.

Market Internals
Vix closed down at 14.02. Skew remains at 126.75 which is within its normal range. Market sentiment is rather bullish. Market breadth continues to slope upward.

The week ahead
The prognosis is that the market has legs. A few beaten down sectors such as oil, commodities are beginning to attract investors. Market participants are not yet overly bullish with irrational buying. Hence a cautious yet bullish market is likely to have legs. In the coming week, we could see sideway action as the market is over-extended.

 

To YOUR wealth!

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