After Tumultuous 2 Weeks, Equities Oversold – Good Idea To Cover Short

What a week!  Stocks really took it on the chin last week, but by Friday there was some semblance of stability.  Several indicators are in deep oversold territory.  At least a reflex rally is due. During the carnage over the … Continued

SPY Shorts With M/T Focus Have Option To Sell Weekly Puts

Bulls put foot down on major US equity indices last week.  They have the ball near term.  Shorts with medium-term focus can sell weekly puts to raise the short price. The greenback acts strong.  The US dollar index (95.98) hit … Continued

SPY Once Again Rejected At Channel Resistance – More Downside Likely Ahead

SPY last week was rejected at channel resistance, coming up $0.63 short of surpassing the all-time high of $286.63 reached January 26.  The path of least resistance is down.  A covered put might help. There are interesting dynamics at play … Continued

QQQ Retreats After Testing Channel Resistance – Covered Put Possible Strategy

QQQ made an all-time high last week, but failed at channel resistance.  With the 2Q earnings season winding down, shorts may have better odds. QQQ (Invesco QQQ Trust) hit a new all-time high of $182.93 last Wednesday.  It has had … Continued

WTI Crude Looks Tired – Trade Brewing In XLE

Spot West Texas Intermediate crude, up 54-plus percent since last June alone, is giving out signs of fatigue. Non-commercials have been on the right side of this trade.  As they usually are.  These traders follow the trend, and the trend … Continued

FXE Covered Put Instead Of Covering Short

The April 21st European Central Bank (ECB) governing council meeting was anti-climactic. The deposit rate on lenders’ reserves parked at the central bank was maintained at minus 0.4 percent.  As well, Mario Draghi, ECB president, continued his oft-repeated ‘all policy … Continued