SPX Credit Spread Trader

Phil,

What's your assessment of the market today? I read several times the TICK article you provided us, it's very good. So far, TICK has been is the neutral zone most of the day with light bias to the upside. However, the other thing I look at is the Advance/Decline line and that is negative today. My assessment is that the market is still weak and the bounce is not going to happen today and that the bulls will get tired at some point today.... but my words are worth -2 cents...
 
We have a balance of some large caps moving higher (GM +2.00) and minor fears of TS Wilma in the Gulf. So we are up modestly and will hover around here for most of the day which is great. I think until Wilma shows its true colors we will not have to much of a surge but there is enough support to keep us higher. It is a perfect scenario leading into expiration where we have slightly upward movement but overall sideways.

I do have an upward trendline using the 5-minute chart starting with the bottom last week that I am watching for continued support or perhaps a move back lower.

Phil

Quote from andysmith:

Phil,

What's your assessment of the market today? I read several times the TICK article you provided us, it's very good. So far, TICK has been is the neutral zone most of the day with light bias to the upside. However, the other thing I look at is the Advance/Decline line and that is negative today. My assessment is that the market is still weak and the bounce is not going to happen today and that the bulls will get tired at some point today.... but my words are worth -2 cents...
More...
 
Upward support was broken around 1188.50 on the S&P and it dove to its current 1184.50. So not sure if we will have an up day at this point but still lot of hours left. This just means that the uptrend from the bottom of 1168 has pulled back. Could be a pullback and then resumption of the trend. 1180 is still a reasonable support to the downside so we will see what happens. After 2 1/2 days up a pull back is not unreasonable. As long as it fights back and forth for the next 2 days, fine by me ;)

Interesting note is that the Russell E-mini futures were down all day even though S&P was higher. Possible indication of strength in overall large-caps but weakness in overall market perhaps. Could be just pullback after a few good days.

Phil
 
Well, we have that 20 point buffer between 1185 and 1165 that needs to last 3 days...

By the way, how do I get the post I'm replying to to come up in bold like other posters do? I looked at the Help area but could not find an answer..
 
Quote from andysmith:

Well, we have that 20 point buffer between 1185 and 1165 that needs to last 3 days...

By the way, how do I get the post I'm replying to to come up in bold like other posters do? I looked at the Help area but could not find an answer..
More...

Click "Quote" in the bottom right hand corner...:)
 
Upon careful examination of the replies on this thread, I would speculate that many of the individuals on here can be found at their local church on Sundays "praying" for market salvation.
 
Hey Optioncoach,

This question may have already been answered but I'm too lazy to read this whole thread to find it. Why don't you buy these OTM verticals instead of selling them? You would make your life a lot easier and lot less stressful. And don't say time decay because the positions are interchangeable.
 
Whatever makes you feel better about your own trading.....Naysaying is a great contribution.


Quote from jackbyrd:

Upon careful examination of the replies on this thread, I would speculate that many of the individuals on here can be found at their local church on Sundays "praying" for market salvation.
More...
 
Quote from Maverick74:

Hey Optioncoach,

This question may have already been answered but I'm too lazy to read this whole thread to find it. Why don't you buy these OTM verticals instead of selling them? You would make your life a lot easier and lot less stressful. And don't say time decay because the positions are interchangeable.
More...

Well, he's answered similar "Why don't you" questions before. This thread is about a particular technique. There are thousands of good option strategies, and optioncoach is just trying to present one that has worked for him.

I know you have also started educational threads on different option techniques. I, personally, have learned a lot from your threads also. If you have something detailed to say about an alternative spin on these verticals, I am sure many would appreciate it. Although I have read through the long debate on selling premium in that monster thread a few months ago, and I agree with you that there is no "edge" (I have learned to hate that word) in selling premium, I personally am better at managing positions when I am short premium just because of the way my brain works. Please feel free to educate me. :)
 
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