May 2nd Outlook – Gameplan – CAT SPY……..

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On Sunday night I posted my outlook for the week, most notably:

'We have the SPY holding above key levels, and look at some of the indicators. They are just starting to turn. We could easiliy see a test of the highs or a break in the next few weeks. The bulls are not going away. My target this week is SPY $141.50. "

Today SPY hit $141.66 and then faded, .16 over my target. The fade turned into a sell-off late and SPY closed in the mid $140's. I'm not concerned at this juncture about another pull back. We are well above the 50dma, the RSI has plenty of room to go higher. A beak of $140 would draw my attention, further weakness could be signalling a lower high in the SPY. But we did hit a higher high on the DOW today. The bearish case from here is mixed at best. I have been playing it light lately, cutting my losses, locking in my profits.

You could see that with my NFLX trade I posted in chat today. I bought 10 of the $85 calls for $.53. I sold them 45 minutes later for $.78.

What I will be watching and possibly trading tomorrow.

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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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