Since the now monumental “Comey Memo Reversal,” the seemingly unstoppable market has impressively gone up and away for 3 straight days. Overall volume on the other hand, has been sinking fast over the same 3 days (Monday was -13%), and even though CHILLY days on HG point towards high advancing volume, the drop overall means that big institutions are just not that impressed… Or, perhaps, they’re just waiting for something better (like the Fed on Wednesday or consumer sentiment on Friday for instance).
The recent burst of volatility, though, is like a breath of fresh air for swing traders. And we took full advantage of a more than 3 point move on SPY by entering last Thursday (at the bottom of the swing), and then selling our SPY calls on Monday for a +56% gain. TVO has finally broken out of its 3 day range of -0.8 to the upside, and even though it was quite a 3 day run, if the move toward positive oscillator values continues, the bulls may not be willing to lay down their cards just yet. -MD
To view past positions check out our Trade History.
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