AAPL

For those of you leasing our software, congratulations on catching the sell signal on AAPL around $280. You are currently in the money by about 1 point. We did not initiate a short position as we would like price to pullback to the $281 area for an ideal "Rampage" setup. We will be watching this closely over the next day or so.

Closing ES position

Unfortunately, for the bears, we were not able to close below the SPY 113.50 level. This level, provided support througout the day. We have closed our short position on the ES at 1134.50 resulting in a small loss (3 points). Our intraday trade more than made up for this and we will be watching closely to see if this level can break in the next few days (causing a short term trend reversal) or if this was a healthy pullback in strong uptrending market. As you can see from the attached chart, no technical damage was done today by the bears.

Short ES

We have initiated a short position on the ES around 1131.50. This is based on our swing trade charts. We have placed our stop at 1136.

Great Trade!!!

Perfectly executed. Locked in gains on SPY. Watch the 113.50 level to break before initiating additional short positions.

Protect profits.

Moving stop on SPY to 113.80. Locking in more profits!!!

Locking In Gains!

Whether you bought straight puts or initiated a credit spread, you are now in the money. Moving SPY stop to 114 and locking in gains.

A little weakness

Our SPY 30 minute chart is starting to show some weakness but our higher timeframes are still on a buy. As mentioned in our earlier post, keep an eye on SPY 113.50 as the level to break before a short term trend change develops. For the aggressive traders, sell short SPY here (114.25) with a stop above 114.65.

"Get Ready"

Futures are a little soft but off of their worst levels. The SPX is not too far from multi-month highs. Bulls will be looking for a break out above 1150. Bears would like to see a close below 1135. The beauty of this market is that we have caught some unbelievable trends both long and short. Volatility is picking up so keep your powder dry. Many sectors are currently at or near new highs. Please check back as we'll be posting some new ideas throughout the day.

Still Showing Strength

The market shook off early weakness and held a steady bid on the buy side throughout the rest of the day. Watch for SPY 113.50 on the downside. A break below this level and we may see some overdue selling creep into the market.

Reality?

The SPX was up almost 9% in September, which makes it the best September in over 70 years. The SPX was up almost 11% for Q3, yet the institutional equity volume was down around 40% on the major trading desks. The buzz around the "Street" is that the market was accelerated with the help of the PPT as the Fed bought Treasuries from the banks, and the banks would then deploy cash into the market and rapidly accelerate the futures/buy programs, because it would trigger the algorithms. The amount (roughly) was about $5 billion per day when it was active. This does make a lot of sense since the big players (institutions) were not very active in the market as evidenced by the major brokerage firms significant drop off in volume. Most all of the gains were at the opening and the last hour or so. The market is very overbought here and the decline in the US Dollar has helped the markets gains. Any reversal in the dollar will be a catalyst for the pullback during October. Watch the dollar closely.