Will the bulls regain control?
Dear valued subscribers,
Another week has passed and we are now seeing signs of the bulls returning after the past 6 sessions. The SPX rallied 15 points to 1379 on Monday while the DJIA (i’m sure you’ve heard it by now) rallied 119 points to 12105. A peek under the hood shows that institution players are not so bullish after all with yesterday’s overall volume increased only marginally. Volume at both the NYSE and Nasdaq increased a mere 1%.
What this tells us is that this rally is not a confirmation that the bulls are back. This rally, as widely reported as it is, can easily crumple over the next few days if the institution bulls are still shying away from the market.
As the chart shows, today will be a make or break day for the SPX. The uptrend is still intact. If SPX has the strength to break through yesterday’s close of 1379, it will have a higher chance of testing the prior high of 1389. 1389 will be another pivot. However, if SPX fails to close above yesterday’s close, the immediate support of 1364 on 3 Nov will be the next pivot.
Our weekly positions update
Despite the fact the recent bull run had ruined our positions’ profit potential, we managed to close up some of our positions for small profits. Do check out our performance here. We’ll post our Nov’s result when the month comes to a close. Currently, we have a few more Nov positions open. We’ll wait for a suitable time to close them, if not for a profit, then at least a small loss.
To your trading success,
Gary
Founder, Head Trader of MarketNeutralOptions
p/s: I recently come across this article on MarketWatch and decided to post it here for all to read. I strongly encourage any options beginners to reseach intensively on the internet before signing up courses that cost thousands of dollars. Most of the time you will be able to find the same information on the internet for free.
