It’s sarcasm, calm down. I couldn’t think of (and wasn’t interested) in trying to be creative for my title this week. Anyway, as there isn’t much new to report I will make this quick and easy.
Overbought/Oversold: There is very little interesting here, but will update it for regular readers.
SPX stocks at 20-day highs: Completely lagging still and not consistent with the market being near highs. However, once again it is near levels that in 2015 have lead to bounces.
SPX stocks above their 50-day MA: Also uneventful, but again near levels that we have often seen a bounce (in 2015).
Next weeks road map: Put simply my bias is bullish as long as SPY remains above 210 (and will show why below). There is of course a chance we dip to the 50-day MA (now at 209.86), but as of now I believe the dip will quickly be bought and we would recover 211 getting the market back into the second range shown on the chart below. Above the blue line, and even better above 212.50, there are good odds we can reach new highs.
Open Interest: This is typically a bullish sign. The high strike puts begin at 210, which will often act as support to any market drops below there. That happens to align well with the 50-day MA giving even more relevance to that level (hence the risk/reward favors to buy any dip slightly below 210). Having said that, if price falls below 210 and cannot quickly recover, then there are very good odds that price falls below the 209 strike and possibly even reaches the 207 strike (which happens to align with the bottom of range 1). The good news for bulls is this is the first time in weeks that there aren’t many calls above – so if the market can rally then there are less battles for price to contend with. 
In summary:
- Above 210 = bullish (longs are better)
- Hovering around 210 = neutral, but odds favor small dips below will be bought.
- Below 210 = bearish (shorts are better)
That’s all I got! Good luck next week.
For actionable ideas, options trades and open interest for momentum stocks check out a subscription.
Next Week Determines it All
It’s sarcasm, calm down. I couldn’t think of (and wasn’t interested) in trying to be creative for my title this week. Anyway, as there isn’t much new to report I will make this quick and easy.
Overbought/Oversold: There is very little interesting here, but will update it for regular readers.
SPX stocks at 20-day highs: Completely lagging still and not consistent with the market being near highs. However, once again it is near levels that in 2015 have lead to bounces.
SPX stocks above their 50-day MA: Also uneventful, but again near levels that we have often seen a bounce (in 2015).
Next weeks road map: Put simply my bias is bullish as long as SPY remains above 210 (and will show why below). There is of course a chance we dip to the 50-day MA (now at 209.86), but as of now I believe the dip will quickly be bought and we would recover 211 getting the market back into the second range shown on the chart below. Above the blue line, and even better above 212.50, there are good odds we can reach new highs.
Open Interest: This is typically a bullish sign. The high strike puts begin at 210, which will often act as support to any market drops below there. That happens to align well with the 50-day MA giving even more relevance to that level (hence the risk/reward favors to buy any dip slightly below 210). Having said that, if price falls below 210 and cannot quickly recover, then there are very good odds that price falls below the 209 strike and possibly even reaches the 207 strike (which happens to align with the bottom of range 1). The good news for bulls is this is the first time in weeks that there aren’t many calls above – so if the market can rally then there are less battles for price to contend with.
In summary:
That’s all I got! Good luck next week.
For actionable ideas, options trades and open interest for momentum stocks check out a subscription.
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