Hope everyone has been trading profitably in this choppy environment the past few weeks. We have been bullish on the S&P for sometime, and put the crosshairs on the $2k area, and over $200 on the SPY for 2014. Didn't see many calling for that back when I wrote that in 2013 : https://www.optionmillionaires.com/market-headed-higher-part-2/
Most recently, the market hit new highs in September amongst all the recent headwinds, which all seemed to fall by the wayside at once..ie. Ukraine, Scotland, ..ect.
It was at that point where I became cautious of a pullback, albeit a small one, and pointed to the $193 area on the $SPY as a bounce point. Unlike all the market pundit and bears who have been spewing fear and crash warnings for years(and who start to pound their chests on the first 1% down day), we are open to downside but remain bullish on the overall market. I wrote about it here: https://www.optionmillionaires.com/equities-perched-edge-cliff/ and here: https://www.optionmillionaires.com/hong-kong/ and also discussed it on the Week Ahead Webinar, which is hosted every Sunday night:
Sure enough, the market pulled back, with the $SPY falling under $193 briefly yesterday, before bouncing in strong fashion. I spoke in our chatroom and posted on Twitter that I felt the bounce was real, and the market is now pointed to all-time highs before the year is out. Here was my reversal chart:
I am sure this is not the last of the volatility and big swings, but think it does show that the bull run is far from over.
Next week is the calm before the start of the 3Q earnings storm, which begins on the the following week. Earnings season can be some of the most profitable in terms of option trades, and we have been a great resource for those looking for ideas to make some profits. You can see an example here : https://www.optionmillionaires.com/option-trading-requires-put-balls-line/
All weekend we will be running a 15-day free trial promotion for anyone interested to see what we are all about. We will also be introducing some new site features around earnings on the following week, so it is a great time to check us out.
Anyone interested , please send an emailwith "free trial" in the header to: optionmillionaires@gmail.com
Have a great weekend!!
- JB