OctWk2 - SPY Market Summary
What a week! Take a look at the charts and see that wonderful reversal. Was there a US governmental shutdown? Or did the market retraced after hearing some good news? It just doesn't make sense, the bad news is still there, the deadlock is still there, but the markets seem to be buoyant, and for no good reason other than Dr B giving everyone more money.
Maybe that is a reason for rejoicing. Whatever. A look at the chart above, and you would see that price was a bearish marubozu and pierced the cloud. It is important that price closed into the cloud. This just means that price will be going sideways henceforth. But wait! The price movement for the next day was a doji formation, and once you correlate that to the candle the day before, it sounds like the sellers are running out of steam. The buyers are coming in and taking over? Maybe not.
And the next day, price shoots up to the sky. Looking back at the Chikou Span, and you will understand that the top of the cloud forms a significant resistance. And as such price didn't have the strength to push through it. Thus it naturally had to rebound. That rebound is so fantastic that it is now officially bullish.
This is where I come in and make history. :)
I sold a SPY Put Spread at $160/161 for a premium of $0.05 and pocketed an return on investment of 2.95%. I wish the markets was like this every week.
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