It has been a hectic week(s) for me as I attended a few great seminars and working on an Artificial Intelligent project. I am still monitoring the market closely, daily routine which will never change 🙂 and I manage to take good profit on few stocks (mainly momentum trading) and futures. I will share more about my stocks pick in the future posts.
S&P 500 futures broke 2878.5 resistance line decisively. Trader who opened bull put spread trade earlier can close the position to take the profit. This position should reap at least 60-70% of the total premium received.
Moving forward, the chances of the futures to hit 3000 and subsequently ~3006 (138.2% fibonacci extension) is pretty high. Conservative Options trader can continue to sell bull put spread (credit spread) and/or buy bull call spread (debit spread) to take advantage of this bullish setup. Aggressive trader can long the futures by setting the stop loss at around 2870 with profit target at 2995.
Crude oil futures was trading between 10 SMA and 50 SMA over the last 5 weeks. As the uptrend is still not confirmed until futures protrudes above 10 SMA, it is recommended to wait for a clearer trend before entering the market. Nevertheless, options income trader can sell iron condor at 76 (bear side) and 63 (bull side) respectively to take advantage on time decay while waiting for a clearer direction to form.
Gold futures formed bullish piecing pattern last week after dropping for 10 weeks! No action is recommended at this moment.