Trade Plan for 9/26
Note: The price to new subscribers only will increase at the end of this week. See the announcement here: Pricing Change
The weekly post should be reviewed prior to this. It includes a free video on QQQ 0.00%↑ and SPY 0.00%↑
Link to The Week Ahead
Today was quite a dud on SPY 0.00%↑ The index remains pinned due to Monday’s expiring JHEQX collar which has a short call position at 5750 SPX. Bulls made an attempt to crack last week’s high on ES (5797.5) and head for the strike but instead the look above and fail of last week’s high triggered weakness.
When the index is pinned in this way we often see massive amounts of dispersion, meaning that if one name/sector is up a lot something else needs to be down as an offset. For today, QQQ 0.00%↑ and particularly semis like NVDA 0.00%↑ and AMD 0.00%↑ were strong which rendered IWM 0.00%↑ and DIA 0.00%↑ quite weak. Naturally this was not good for our IWM position which stopped out. We took some additional profit on NMM 0.00%↑ at $63.55 and other than that no change to any swings.
Unless bulls can crack 5750 SPX sooner, We should see things open up after Monday which should make both swings and day trades more fruitful.
These are normally great days to take off from trading or get a quick trade and be done for the day. We do have GDP, jobless claims, and JPOW right before the open tomorrow so perhaps that opens things up.