American Options Trading

Morning Coffee

Rob Roy — Thu, 17 Jun 2010 14:28:26 +0000

Although opening slightly higher this morning, the market has moved to the downside after the release of some troubling economic data. The jobless claims report showed a surprising (to some) increase of 12,000 claims or a seasonally adjusted 472,000 after three consecutive weeks of drops. The LEI (Leading Economic Indicators) showed an increase of 0.4 against an expectation of 0.5. However, the most shocking news of the morning was the Philly Fed Index coming in at a reading of 8 for June after a 21.4 reading in May. That is an amazing drop in manufacturing activity

Afternoon Tea

Rob Roy — Wed, 16 Jun 2010 19:26:02 +0000

At the time of this posting, after finally breaking to the upside, the market is moving back down for yet another test of the 1108 level (as you clearly know by now, the 200 day moving average).

Morning Coffee

Rob Roy — Wed, 16 Jun 2010 14:22:02 +0000

The testing process of a break of support/resistance works both ways. The S&P was able to break above and more importantly close above, the important 200 day moving average at 1108 on Tuesday. This morning the market has pulled back slightly and is testing the break from the upside. Technical traders will all be watching closely to see if the market can hold that break from Tuesday's trade.

Afternoon Tea

Rob Roy — Tue, 15 Jun 2010 17:27:41 +0000

Here we go again! As with yesterday, the market broke above 1100 and is testing the 200 day mva at 1108? Can it break it this time? If so and more importantly, can it close above 1108? The afternoon battle will tell the tale.

Morning Coffee

Rob Roy — Tue, 15 Jun 2010 14:29:59 +0000

The market opened higher and is once again testing the psychological level of 1100. As discussed yesterday, the market was able to move above 1100 but was turned back at the 200 day moving average at 1108. The same scenario is setting up again today, ie: a test of 1100 and an attempt to break back above the 200 day moving average.