today is the day to make the argument for spreading you could have gotten killed long or short on a directional play.
UNG looking attractive here, if I had Jim Rogers account I would sell a couple k puts and go buy a new bow tie.
I'm interested to see what happens with these weekly A downs. We're there in many things now. I'm watching the XLK/AAPL. XLK's weekly could also be a nice bounce off the monthly A up. AAPL's trying to fail now. A failed weekly A down in XHB would be a nice buy, (if that should happen mind you). XLE; this is one I'm watching for a strong move higher. I'll be very interested to see what Mr. Fisher has to say tomorrow, (Half-time report). A failed weekly A down here could lead to a confirmed monthly in the next few days, (depends on how you count confirmed monthlies - I don't have one in this space yet). There are obviously some interesting individual names right now too, but my focus, (given the current environment) is mostly in sector ETFs.
I'm starting to feel bullish. The harder the market makes it for longs to hold on, the more bullish I get. I think the market is going to slowly become desensitized to Europe. We shall see.
While I certainly see the benefit of spreading, I actually don't, (other than options spreads which aren't really the same - as I typically still take on some level of risk and my bet is directional). For me, it's all about time frame, and the type of chart I use. I'm able to escape a good deal of noise using higher than average time frames around key ACD levels. If you got long say, that failed monthly A down last week in some names, you're sitting in winners, or you sold some and took profits on the open today. Just a for instance for anyone who doesn't/can't spread.
Something else to mention. I posted about taking profits at the open today. If you see action like we did on open, there's nothing wrong with taking profits on your remaining longs too. As Mav's been kind enough to share, a failure at one level is usually a ticket to the opposite level. If you're a worried bull when we can't hold 1325-1330ish, book profits and wait to see where we firm up. My next level of interest as I mentioned is the weekly A down in most names. If we confirm, I'm looking at the OR for the month to firm, if we blow through that, then the last stop for the bulls is the monthly A down. That said, ain't nothing wrong with being short while you wait for those levels to firm either, (I'm not however). IMO the OR is just as important a level to watch as the A's.
It's the S! (not sure if anyone remembers those commercials...) No, not Sprint, SKX, Sketchers. HOY today and a confirmed June A up.
King, you can't spread in this market my man. When correlations go to 1 the last thing you want to do is spread! I haven't put on any spreads in the past few weeks and shouldve stopped sooner, its very hard to gauge relative value in a erratic tape like this one.