Market Pullback Scenarios / Bullish Plan
Hello Traders,
Wow, quite some moves happening in the market today. We finally have an over 1% daily move in the S&P ETF.
I'm personally watching for a potential bounce at the 50 Moving Average and plan to initiate a bullish position by purchasing some call options. When price nears the moving average I will update on the expiration and strike I'm looking at. Price has not tagged the 50 Moving Average since LAST YEAR!
Now if the trade goes sour or there is no intra-day bounces at the 50 Moving Average then I will be anticipating a healthy -5% pullback from YTD highs down to the 100 Moving Average (Green Average) in which I will be planning to initiate a bullish position thru call options preferably over 1 month worth of expiration.
RSI did see some bearish divergence while the SPY was trading at/near the YTD highs.
As always manage your risk accordingly, trade smart and with a plan.
Cheers. =)
Wow, quite some moves happening in the market today. We finally have an over 1% daily move in the S&P ETF.
I'm personally watching for a potential bounce at the 50 Moving Average and plan to initiate a bullish position by purchasing some call options. When price nears the moving average I will update on the expiration and strike I'm looking at. Price has not tagged the 50 Moving Average since LAST YEAR!
Now if the trade goes sour or there is no intra-day bounces at the 50 Moving Average then I will be anticipating a healthy -5% pullback from YTD highs down to the 100 Moving Average (Green Average) in which I will be planning to initiate a bullish position thru call options preferably over 1 month worth of expiration.
RSI did see some bearish divergence while the SPY was trading at/near the YTD highs.
As always manage your risk accordingly, trade smart and with a plan.
Cheers. =)
Komen:
As expected, price bounced at the 50 Moving Average. I was not able to enter a trade due to being out of the office on meetings. ='( LOL
