Traders Corner   24 comments

S&P 500 Daily Momentum: Bearish
S&P 500 Daily Overbought/oversold: Neutral
S&P 500 Weekly Momentum: Bearish
S&P 500 Weekly Overbought/oversold: Neutral
S&P 500 Futures (June): Flat
Overall: With the FOMC meeting minutes coming out this afternoon, I would expect little movement in the indexes this morning. Yesterday, the S&P 500 dipped below the 50 day moving average, so I question how much support that will be if the market responds negatively to the FOMC minutes.

The S&P 500 levels to watch today:

UPSIDE: 1854 (April 8th’s high), 1863 (April 4th’s low and the 20 day moving average), 1864 (April 7th’s high), 1867 (February’s high), 1882-1885 (3 data points and March’s high), 1891 (top of the Bollinger Bands), 1893 (2 data points), and 1897 (April 4th’s high and the all-time high).
DOWNSIDE: 1849-1850 (January’s high and December’s high), 1841 (April 7th’s low), 1840 (50 day moving average), 1837 (April 8th’s low), 1835 (bottom of the Bollinger Bands), 1834 (March’s low), 1826 (100 day moving average), 1789 (150 day moving average), 1775 (October’s high), 1770 (January’s low), 1767 (December’s low), and 1757 (200 day moving average).


24 responses to “Traders Corner

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  1. I will be watching the kang IPO today. It looks like an interesting company.

  2. They are making money and growing.

  3. Bought KANG at 16.36. Highly risky play. As Trader mentioned IPOs on day of first trading can be extremely volatile.

  4. There are a several things that look troublesome for the market. Over the last few weeks the SPY has been closing at or close to the low for the week. Not a good sign. On the daily chart, the up days do not have much technical support. On the last pop at the end of March volume on the SPY dropped each day as the SPY moved higher. Volume on down days is greater than up days.. We may move higher from here; however, I would like to see some more strength in these up days before I would say we are out of the woods.

    • I’m with you Trader. I’ve got one call that will be exercised and two that will expire this on the 11th. I intend to rebuy the expired calls and keep the exercised $ in cash.

  5. LMNS is up 7% today. I guess it took a day for people to read the analyst reports.

    • JRCC, in bankruptcy is up 7.9% so far for the day. I can’t keep from watching a train wreck. OK, why would you buy stock in a bankrupt company with the very real potential all stocks will be wiped out in the re-organization or zeroed out in a liquidation?

      • Latetom,
        It’s a lottery ticket strategy. If the shareholders aren’t wiped out, then the shares could have value again after the bankruptcy.

        To give an example, Fannie Mae and Freddie Mac shares were trading even after the government took control of both entities, on the off-chance the entities or the government might decide to reimburse the shareholders.

        Taking a look at JRCC, it actually could be a good deal if the shareholders can come out of bankruptcy without being wiped out. With a price/book of 0.04, it’s a steal, but that is only IF the shareholders don’t get wiped out.

  6. I added SPXU at $56.90. I also added UPRO at $98.70. I will dump one after the S&P picks it’s direction.

    • I sold SPXU at $56.42 and a 0.84% loss.

    • I sold UPRO at $99.46 and a 0.77% profit. Fortunately, I did make one mistake in this experiment: My UPRO position was about 40% larger than my SPXU position. But I can live with mistakes like that. 🙂

      • Ed, seems like a high risk play. In order for this to work you need a lot of volatility to offset the losing side and your timing has to be just right. Tough to make this strategy a consistent winner.

      • Trader – did you sell your tza? Has today’s action changed your view on market direction? I had a great day as LMNS and RPXC were up a lot and I got some juice from KANG. On year now up 7.4%, up 2.5% last two days after a 6.5 point drop previous three days. It does feel (to me) like the market is becoming more volatile.

      • Trader,
        The only way I’d duplicate this again is on a day where I expect a large event-based move (such as a Fed day). Also, I’d make sure to be closer to the same amounts in both SPXU and UPRO.

      • Feels like betting on red and black at roulette table.

      • Marshall, I’m still holding TZA. I need to do a little more research to answer your question on direction. Won’t have time until later.

  7. Marshall, r u going to buy back kang?

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