Channel Surfing

channelsurf

 

Today stocks continued to show their buoyancy, with the, now customary, late day pull back the only thing keeping the bears from going back into hibernation.  Just like Monday, stocks rallied to start the session, and spent most of the day at or around their highs.  FOSL soared some 32% creating some tremendous profits for call holders:

The $90 strike from $.45 to $5.10

The $95 strike from $.27 to $2.50.

The question now is when will this market pull back.  We've had a strong reversal since mid-day on Thursday, after stocks were down close to 2%, and haven't looked back.

Today the SPY hit $140.92 before dropping $.50 into the close.  If you look at the chart below you can see exactly why that happened.

 

If we can trust this channel, at some point the SPY will be coming back down below $140, and possibly kissing $136.80 -$137.40 before heading back over $140 to ultimately make new highs for the year.

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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