Market Analysis:

Indices achieved new highs this week as we forecast last week. Strong bank and tech earnings provided the fuel needed for new highs across the Dow, NASDAQ, S&P 500, and the Russell 2000.

The rally softened Thursday and Friday as big name earnings are awaited next week: Google and Facebook, for example.

The Fed will also talk interest rates next week and traders are watching closely to see if the dovish comments from two weeks ago still stand, or if Yellen will be slightly more hawkish.

The VIX sank to another new low this week and looks to close the week sub-10 again. Markets remain in rally mode and will be fueled by earnings and the Fed next week.

It is hard to expect much more upside from here but there isn’t anything to take the markets down right now either. Therefore, look for a gradual drift higher but likely more sideways movement than anything in the short term.

Portfolio Analysis:

Time Bandit Trader current portfolio holdings login in to see holdings

JULY EXPIRING TRADES
Jul RUT 1280/1290 put trade, $1.02 credit
Jul RUT 1470/1480 call trade, $0.76 credit
Jul SPX 2490/2495 call trade, $0.65 credit
Jul SPX 2360/2365 call trade, $0.60 credit
July trades all expired today for full profits. Two SPX trades yielded 14% (call trade )and 13% (put trade), while two RUT trades yielded 8% (call trade) and 11% put trade. It was definitely a good month for Time Bandit Trader.
The August positions remain very comfortable despite the continued rally. The puts are fabulous shape while the calls still remain a few percent out of the money.
We sincerely appreciate each and every one of our many Members and thank you for being a part of Many Ways To Trade.

Option Scalper current portfolio holdings login in to see holdings

This week’s breakout to new highs has us eyeing selling out of the money calls. However, with earnings season starting off strongly and option premiums at historic lows, just look at the VIX, we are being very cautious in entering new trades. We have learned our lessons chasing trades into rallies. Patience always wins this game.

A new trade is likely Monday or Tuesday, especially in the presence of a continued move higher.

We sincerely appreciate each and every one of our many Members and thank you for being a part of Many Ways To Trade.

 

Pin It on Pinterest

Share This