Hey all,
there are a great many market prognosticators that use the moon cycle to predict climactic turning points in the market. I noticed that Monday was a full moon and that stocks looks washed out and bonds looked over done (got stopped out of long bond position). Indeed, as the market was heading out of Monday, stocks put in a bottom in the last hour and surged dramatically. Today we have consolidated those gains and have broken out again. This classic Bull Flag formation paints a target just above the 120 area on SPY. Because this is the Sept. monthly options expiry week I thought it best to avoid the underlying issues with options expiry and move out the October contract. So with that in mind, I bought 7 of the October 125 Calls on SPY for 1.56. While quite a bit above our target, to most effectively use $1000 I had to go here. Should we get our anticipated move into the 120 area this option ought to appreciate considering the amount of time remaining.
That's all for this post,
Brian Beamish FCSI
The Canadian Rational Investor
the_rational_investor@yahoo.com
the-rational-investor.com
All appropriate disclaimers apply, DO NOT risk capital in options trading that you cannot afford to lose.
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