AprWk3 - SPY Thursday Market Update - As projected, last night was a drop. Now it is still a weak bearish drop, which suggest that it could be a long in coming correction, and perhaps it is so. The two moving averages of the Tenkan Sen and Kijun Sen are still moving together for the moment. How long will this collaboration last? Let the market decide tonight.
Yesterday's SPY closing came to a screeching halt at $153.14 after having dropped $0.97 with an intra-day low of $153.55. My estimated trade of a Put Spread for $149/150 at a premium of $0.05 did not materialize. I guess the drop last night was no deep enough.
So my next question naturally would be, is there going to be another drop tonight? If this is a minor correction, then the SPY is likely to recover, and get back on track to its all time high. If however, the market should decide that this is the end of the bull-run, then we might see the weak bearish sentiment become a much stronger one. If the SPY were to drop another dollar, we might see the SPY threatening to pierce into the Kumo (Cloud).
So what's the trade tonight (Friday US time morning)? Well that remains to be seen, if there is a drop, which I think it might be quite unlikely, then I will sell a Put Spread, however, if the SPY were to recover, I might try hunting for a trade in GLD. ;)
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