There it is… so far it looks as though we finally got the bounce I had been waiting for. The Russell flew up about 17 points this morning at the opening and the overall markets look like they will continue to move forward as we get a slight relief bounce. Barring any bad news today, it looks as though all of the trades closed this week would have held up just fine.

So what does this tell me? First off it tells me that the analysis was correct, but it also is a very clear (and expensive) reminder that there are other factors that need to be analyzed in the market at all times. It’s important to look at the big picture, and in these past few weeks I under estimated the level of FUD out there. I am still surprised by the severity of the correction we experienced and now it’s time move forward to the next month.

I’m going to do some quick analysis today, and depending on how things look, I may open a new directional July position. I will be looking for some additional confirmation of the short term upward bias before committing capital, and will post updates as they present themselves.

I’ll put up a what if this weekend showing what might have happened based upon Friday’s settlement numbers in both accounts. Enjoy your week!

Update
I did put on a papermoney trade today. I bought 50 SPY July 127 Calls for $1.45 ($7,250 + $85.95 in Commisions). That takes the cash balance in the papermoney account down to $82,281.00, it looks like I can sell them for $1.65 right at the close of the market today. Futures are up, so I’ll likely unload them tomorrow for a quick profit. I don’t want to try and ride a rally too long… I’d rather take a quick profit, feel good about it and move onto July long term positions…

Categories: Options Trading, Papermoney