Traders Corner   7 comments

For the last 2 days, the S&P 500 has gotten close to the 20 day moving average, and below it. Both times, the S&P 500 has moved back up above it. On the other hand, it has also gotten close to the all-time high both days, but couldn’t mount a real challenge to it. With the Bollinger Bands still narrowing, it looks like we have our trading range before the S&P 500 decides which direction it is going to choose. With all of the up-and-down over the past few days, the S&P 500 doesn’t seem to be giving us any tells as to direction. Proceed with caution.

The S&P 500 levels to watch today:

UPSIDE: 1849-1850 (January 21st’s high, December’s high and the all-time high), and 1853 (top of the Bollinger Bands).
LAST CLOSE: 1843, inside the 1843-1847 (6 data points) range.
DOWNSIDE: 1837-1840 (6 data points), 1836 (20 day moving average), 1835 (January 17th’s low), 1827-1832 (7 data points), 1823 (January 6th’s low), 1821 (January 14th’s low), and 1819 (bottom of the Bollinger Bands).

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7 responses to “Traders Corner

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  1. I should have taken my own advice on Norfolk Southern. Up in early trading today and up 26% since I recommended.

  2. Follow Marshall’s buy on RIOM at 2.05.

  3. Sure beats my 2.26! I have noted you do that a lot! Did you hold GAME? I see it is up a lot over past week.

  4. Trader, regarding your comment on ANGI premiums yesterday: ANGI premiums are so good right now because the implied volatility of the stock is quite high right now (Per the OA, implied volatility is a relative parameter; this website will allow you to check out the implied volatility of various stocks: http://www.cboe.com/framed/IVolframed.aspx?content=http%3a%2f%2fcboe.ivolatility.com%2foptions.j%3fcontract%3dC254D342-C4A3-4378-83B9-4DC8F0CC1872&sectionName=SEC_TRADING_TOOLS&title=CBOE%20-%20IVolatility%20Services)

    Hopefully you will find the implied volatility charts useful when searching for other covered call opportunities.

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