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We Have An Answer

Updated: Dec 16, 2020

The SPY is trading near 364 today after closing at 352.66 on Friday. I mentioned the 5 percent day session that occurred on Friday, hinting to a sustainable move in one direction or the other. It's now clear that the direction is upward. As a reminder, a 5 percent day occurs when the entire day's range is established during the first 60 minutes of trading. The break out of the range in one direction or the other establishes the trend for the foreseeable future. I'd like to see today's close above the monthly trendline. Anything above 363 on the SPY would do just fine. The GLD is trading below 167, and it's closing in on the ~165.35 technical objective. I'd like to put some risk on by opening a December credit put spread soon, namely, the 166/165. I'm expecting a stimulus deal surprise in the next couple of days, possibly over the weekend.

***We must add to both Put Credit Spreads (weekly), and back call spreads in the SPY for December 11th Delivery***


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