Market Back Above Major Technical Support – Sell Bullish Put Spreads

Posted 9:30 AM ET - The market rebounded yesterday and it paused just below the 200-day MA for most of Tuesday. Late in the day we saw a nice rally through that resistance level and this morning we will challenge the 100-day MA. The market is likely to float back into the trading range. End of quarter window dressing attracted buyers. Earnings season is right around the corner and that typically attracts buyers. The 4th of July holiday is a few days away and major holidays tend to be bullish Central banks are printing money like mad and they will be dovish after the Brexit news. Many Asset Managers are still in a state of denial. They can't believe England voted to leave the EU. Many believe that the EU will negotiate terms for migrant workers and that England will remain in the EU All of these influences kept the market from falling this week. Look for a bullish day today. I will be day trading from the long side today. The shock of Brexit is over and the market should be able to tread water. This is a good time to sell OTM put spreads. Find stocks that have major tech support below the current price. Sell puts that are below that support. If the support level is breached, buy back the puts. If support holds, let time decay work its magic. Chat room members will be posting bullish put spreads in the chat room today and I will analyze them. This is a good time for credit spreaders to take the 1 week free trial. Energy and financials were hit hard and there are some good candidates in those sectors. Once the market drifts back into the range, the action will slow down. The holiday will also drain the life out of the market. Both events are good for premium selling strategies. I will day trade fairly aggressively right on the open. I will lean on the 100-day MA. If it fails I will exit longs and re-enter when it crosses back above it. . .

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