Thursday, 9 May 2013

MayWk2 - Wednesday Market Update


MayWk2 - Wednesday Market Update

From the charts above, the trend is definitely bullish. There is no doubt about it at this stage. If you were to take a look at the movements last week, maybe one might say that it is quite uncertain, but from the looks of it, it is a bull-run that has no boundaries. We are definitely into uncharted territory here, so my advice is to tread carefully and not be swayed by temptation.

I am definitely going to hunt for a trade this week, but from the looks of it, anything might happen, and the last thing you (or me) wants is to be caught in the middle of a sell-off come Friday. If you examine the movements during the day, there were some opportunities to sell a Put Spread. (See Below).



Source: Yahoo Finance

Looking at the movement of the SPY, there was a potential for a trade at just slightly before 10.30am US Time. Imagine if you were to sell a Put Spread at that moment if there is a suitable buffer and the premium was ideal. You would have hit a home run for sure. :) Is this gambling? You decide.

In any case, the SPY futures this morning (Singapore Time) looks negative to me. So who knows what will happen tonight. My guess is, it is a cross-hair movement, but who really knows. Let's see if there is a suitable buffer to sell something tonight.

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