Traders Corner   22 comments

The S&P 500 levels to watch today:

UPSIDE: 1936-1937 (2 data points), 1939 (August 12th’s high), 1944 (August 11th’s high), 1954 (20 day moving average), 1955 (50 day moving average), 1968 (June’s high), 1991 (July’s high and the all-time high), and 2006 (top of the Bollinger Bands).
LAST CLOSE: 1933, inside the 1927-1933 (July’s low and 5 data points) range.
DOWNSIDE: 1924 (May’s high), 1921 (August 4th’s low), 1916 (August 1st’s low), 1915 (100 day moving average), 1913 (August 5th’s low), 1911 (August 6th’s low), 1909 (August 8th’s low), 1904 (August 7th’s low), and 1902 (bottom of the Bollinger Bands).

S&P 500 Daily Momentum: Bearish (weakening)
S&P 500 Daily Overbought/oversold: Neutral
S&P 500 Weekly Momentum: Bearish
S&P 500 Weekly Overbought/oversold: Neutral
S&P 500 Futures: Positive
Overall: The S&P 500’s Bollinger Bands did something interesting yesterday: They dropped 2 points, as opposed to contracting. A bearish sign, perhaps? On top of that, the S&P 500 got a “mini death cross”, with the 20 day moving average dropping below the 50 day moving average. In spite of these bearish signs, the futures are strongly positive this morning, and the daily momentum indicators are still weakening from their bearish mode. However, with the S&P 500 futures pointing to a price of 1940, it is hard to say this is much more than a trading range forming, for now.

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22 responses to “Traders Corner

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  1. Looks like a market that can’t pick a direction. Until something changes, probably won’t add anything short or long. I’ll continue to sell covered calls on what I have.

    • Changed my mind. UVXY @ 29.90. Sold Friday 30 calls for 1.05. 4.0% for a couple of days if called.

      • I now have two uxvy positions. one Aug 22 at 31.12 with calls at 32.50, The second Aug 16 at 29.98 with calls at 31.50. I would love to get called out on both.

        Trader, does UVXY look like it may have bottomed out on your charts?

      • Don’t know. Technicals are weak on the daily chart. Doesn’t look oversold yet so it may move lower. I normally like to see some strength before I buy. UVXY is an exception because of the high option premiums. I’ll trade the options around the position if I have to and reduce my basis while I profit on the option trades. As long as the market doesn’t rocket higher and weekly premiums stay high, this strategy should work. So far so good.

  2. My CSIQ had a great quarter. Up 14% this morning.

  3. This may sound silly hope some one could answer my question. I recently started with selling covered calls for my stocks. I sold cc for GTAT for aug 29 for 15.50. currently it is above 16. I would expect it would have been called. I dont see any change in no of my gtat shares. How would I know it is calle? thanks

    • Venu, I just recently started selling calls as well and to date, have never been called out early even though I have frequently been significantly in the money.

      Don’t know who your broker is but mine is Fidelity and on their Active Trader Pro Platform I get a pop up note when my shares are assigned and the shares and the related calls drop off my open positions screen and, at that point can be viewed on my history and closed positions screens.

      Hope this helps and good luck.

    • Venu, you should get a notice and you will see the shares get reduced by the appropriate number. I’ve only been called early a couple times on probably a couple hundred calls. I wouldn’t expect to be called before expiration in general. If someone wants the money, they can resell the calls for more than buying the stock and selling it.

    • venu, I have been called out early a few times. Never cared since I didn’t have to wait for my profit. You can expect that most will settle on the expiration date. It will be automatic. If you’re called out your shares will be gone and you’ll see the cash from the sale in your account. If the price is less than 15.50 on expiration the option expired worthless, you got the premium and still own the shares.

    • Venu, I am not the expert, but I think it has to be above $16 after August 29 for it to be called.

      • It looks like Venu sold the 15.50 strike price. That’s the call out price.

      • Marshall, and Trader please confirm, but I thought that US options could technically be called out at any time? While it would be stupid to do so this includes calling the shares when the current price is below the option price?

      • Jeff, they can be called early but this rarely happens. If they are, it will be automatic and you’ll receive notification just like any time you are called. Also, you may only be called on part of your position. This has happened to me a few times.

  4. watching Deere and TNH. I’d like some ag in my portfolio and Deere’s guidance today is driving their stock down. Might be an opportunity to pick up some cheap shares but I’m planning on waiting a few days to see where the stock bottoms.

  5. thank you very much every one for the reply. Looks like I dont have to do anything at this time. Probably they will be call out on the day.
    venu

  6. I sold Titan in March of this year. Been on a downward glide path since then. Stock really should be doing better. Deere concerns me because it just never seems to get wind under its sails even when it is doing well. TNH has a much better dividend and Marshall likes it so I’m leaning toward TNH unless Deere drops dramatically.

    • Jeff, something has really affected the price of a lot of good ag companies. I’m not sure what, I’ll also add is it looks like de could go lower. I checked on De pot ag thn and a few others last week.

    • I got into TWI in the $14-16 dollar range so not a huge loss for me yet. Insiders have been buying in this range so I hope that the worst is behind them and maybe farmers will be buying tires for their old tractors since they aren’t buying new Deere tractors..:)

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