Weekly Thoughts

Is the trend still our friend? Whatever. The short-term trend had a hiccup this past week and quite honestly it felt good. As we enter February, a questionable month for the bulls anyway,I welcome the change from the grind higher.

S3 on the weekly price targets for $SPY is in line with the lower trendline in the 60-day channel as well as some support in price action. If we do sell off again I’d be expecting support in this area.I don’t do a lot with Heikin Ashi candles other than this weekly chart with bollinger bands. The trend is still intact although some longer wicks are appearing so caution is warranted.

The $VIX had quite the day Friday and as such has gone from oversold to overbought in a day. Fear jumped back in the market pretty quickly and I was able to sell some put spreads for February that fit within my risk parameters. I honestly can’t remember the last time an opportunity to sell premium occurred on a Friday as that’s when the spreads typically widen to account for Theta erosion.

Looking forward to another great week in the markets with plenty of catalysts like the $MEE acquisition, non-farm payrolls, and continuing geopolitical issues.