Sunday, September 23, 2012


    
Commentarry on theSPY Trade Analysis   RSI-the indicators has followed the stock and shown strong support the whole way. As the SPY has moved up, so the RSI has followed. It is at the point where it has just entered an over bought position. This is usually a sing that the stock is ready for a pullback but it is no indication of a reversal of direction. Stocks could struggle to stay close to nearly five-year highs next week as worries mount about third-quarter earnings and the market appears primed for a pullback from recent stimulus-driven gains.
A ton of economic reports, including durable goods orders, will grab attention. If they are not good, analysts have worried that it may suggest the U.S. economy is in worse shape than many had feared.

Any disappointment in key economic data that would reverse the market's feeling the economy has stabilized, I think could trigger a 2 to 4 percent pullback.
Profit warnings from such high-profile U.S. companies as FedEx (FDX) helped cement the view this week that third-quarter results could be a drag on the market. Estimates for S&P 500 companies' third-quarter profits have fallen sharply in recent months, and earnings now are expected to drop 2.2 percent from a year ago. 

The SPY  continued at the bottom of the bollenger band this week AAPL had some wild swings as expected.  Using the bollenger bands we made $ and very low risk.  That is what I like.  AAPL released the new Iphone with great fanfare but the stock did little to keep investors excited.  My target on the upside is still $720. Lets just be patient. 

I am trading weekly options to help you grow your portfolios a little each week. We are either making money or not losing money.  Thank you for letting me serve you, I consider it a privilege to work with each of you.  I strive to make a successful trade one week at a time, 

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