Current Long Positions (stop-losses in parentheses): QCOM Oct 60 Calls, AAPL Sept 420 Calls, SPY Sept 124 Calls, IR (31.32)

Current Short Positions (stop-losses in parentheses): None

BIAS: 17% Long

Economic Reports Due Out (Times are EST): Personal Income and Outlays (8:30am), Pending Home Sales Index (10am)

My Observations and What to Expect:

  • Futures are trading about 1% higher heading into the open. 
  • Asian markets were up between 0.4% and 1.4%, while Europe is trading as high as 1.8%.
  • Last 3 significant gap-ups in the market have all given up their gains. It’s hard to put a lot of faith in gap-ups these days. 
  • We are poised to open above the S&P 20-day moving average – key is whether we close above it. The last 2 sessions, the MA has acted as significant resistance. 
  • Today’s early morning strength, allows for a potential test of the highs from Thursday at 1190. A break there, puts us in line to test the intraday highs from 8/17 (1208), which also coincides with the 38.2% Fibonacci retracement level. 
  • Volume over the last 5 trading sessions have been average – nothing significant. 
  • We closed on Friday on the S&P just a shade above 1175 at 1176.80, which puts us above some short-term support. 
  • Be aware of Fibonacci retracement levels on the S&P: 38.2%=1207, 50%=1233, 61.8%=1260.
  • A potential double bottom is in place off of the 1120 lows. A confirmed move could see it move as high as 1280.
  • My Conclusion: I believe that, despite being in a significant bearish market, we will continue to see this market bounce in short term and expect to see this market rally over the course of the next 1-2 weeks. 

S&P 500 Market Analysis

Here Are The Actions I’m Taking:

  • Sold NFLX on Thursday for a 1.5% gain at $216.00. 
  • Bought IR on Friday at $31.32.
  • I’ll be looking to play some over sold bounce plays as well as a few break out plays today. 
  • Looking for a major bounce this week to try and get out of some of my SPY calls.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

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