It worked again. S&P 500 has not been able to break out from this resistance level since GFC.
after 540 days of S&P 500 going basically straight up there is a crack in "smooth market functioning". Breakout from the rising wedge and breakout below 50 DMA. This will cause a major correction between 10-20%.
All other index futures went oversold except RTY MFI as mentioned last night. It actually hit overbought again, lol. If you're gonna play the bounce, I suggest staying away from small caps. I'm guessing gap up and tank tomorrow for small caps, it's too close to support not to test it.
Looking across the panel of leading indicators, it is starting to look as if something ominous is almost completed in building up and about to pop... The JNK High Yield bond ETF is hitting a resistance; The IWM iShares Russell 2000 ETF is in a bind, unable to break out as MACD is crossing into bearish region; The TIPS Bond ETF is falling over; The VIX is about to...
... for a 1.71 credit. Comments: With the 194 only having .29 left in it, rolling it out to the 16 delta strike the contract nearest 45 days rather than adding units. Total credits collected of 3.47 (See Post Below) + 1.71 = 5.18 versus a current short value for the 202 of around 1.97, so I've realized gains of 5.18 - 1.97 or 3.21 ($321) so far.
Appears small caps will be the first to hit overbought on MFI. Probably an up day tomorrow either way, but we'll see what happen on quadruple witching Friday. ALl other indices are in the neutral zone
... for a 1.49 credit. Comments: Rollin', rollin', rollin' ... . With the 201 at >50% max, rolling out to the 16 delta October 22nd 205, as opposed to adding units. I've collected a total of 3.39 (See Post Below) + 1.49 here = 4.88 relative to the current price of the 205 of 2.23, so I've realized gains of 4.88 - 2.23 = 2.65 ($265) so far.
Indicators neutral but NQ MFI went oversold and RTY MFI went overbought, so sector rotation. Rotate, counter rotate, Imma getting dizzy, lol. YM (Dow) also in the middle, no indication of direction
AMC was able to hold the 40 level on Thursday and Friday and has formed a small bull flag pattern. If AMC can't hold the 40 level, it can make its way back down to 37. If AMC can hold above 40, it can bounce back into 46. Over 46 can cause a bigger breakout.
GME double inside day on the daily. ..............................................
Well, well, well.... Here we are back with our old toy -- $ BBIG . It didn't take the easy route, that's for sure, but it's ended the week right where I said it would back on June 26th. LMAO. Now we finally have a clean breakout of that weekly triangle, and 10 dollars isn't far away. My 5c leaps for Jan 2021 (which I bought in May/June) were up 600% on Friday....
If anyone has placed their position in IWM few days ago when I wrote my analysis on IWM, please be careful with tomorrow's small caps market as IWM has reached to the crucial pivotal resistance point, either they could breakout and all small caps stocks will continue to rally OR a strong rejection to downside. Small caps stocks like DKNG, PENN, AMC, CROX, UPWK,...
Macro picture its a bullish setup unless proven otherwise on a ~210 support (200dma) break. > 235 confirms breakout $RTY_F $AMC $CROX $SPY $ES_F $QQQ $NQ_F $VIX $TLT $TNX $DXY #Stocks #Trading
I see IWM dropping from this zone and possibly filling gap below.
A strong dip and rebound at the strong support line for Russell 200 small caps etf at $211, price actions shows positive bounce to potential $224. At least 4/5 rebounds happened at this demand support zone. However make sure that it doesn't break the strong support at $211. Or else upside is bound to happened.
SUMMARY - This is in addition to 4-F (S&P500). BACKGROUND - Please read 4-F, link here: DETAILS - This is essentially same situation as S&P 500, only except there is little doubt here.
... for a 1.37 credit. Comments: With this contract at greater than 50% max, rolling down and out for a realized gain of what I put it on for (2.01) (See Post Below) minus its current value (.79) or 1.22 ($122) credit. Going with the expiry nearest 45 days until expiry/16 delta strike. Total credits collected of 2.10 + 1.37 = 3.47. Were I not to have been able...
Good morning, folks, and happy Friday! Welcome to Opex; let's get right into our analysis. It was another shakey overnight session with Asian stocks leading global futures lower after China said it would pass a strict privacy law by Nov 1st, directly affecting tech and ecommerce companies and their collection and use of certain types of data from their customers....