Market is flirting with the resistance at 12,750. Technical pattern suggests that market has limited upside, but prone to a scary decline if there is any negative news. Having said that, buyers are on the sideline and will take every opportunity to load the shares if there is any short term dip in the market.
Apple will report the results on Tuesday, after the market close. The Fed will make policy decision announcements on Wednesday. These two evens could be the catalyst for any directional move of the market. Otherwise, DOW 12750 should act as stiff resistance for the bulls.
We bought a SPX credit spread today, which will expire on Jan 27. The maximum potential of this trade is 47% ($1.6/$3.4) if S&P closes below 1225 on Jan 27. Furthermore, I covered the short leg of FXI for a net credit of $0.60 resulting in a lower cost of FXI 38 Put.
You can follow me on Facebook for the instant access to the alerts. Henceforth, I'd post all new position alerts, which will immediately show up on Facebook and Twitter accounts, making it convenient for the followers of this blog (link to Facebook/Twitter can be found at mywealthyoptions.blogspot.com).
No comments:
Post a Comment