Market Forecast – Here Is How You Should Trade Friday

June 25, 2020
Author: Peter Stolcers, Founder of OneOption
Author
Pete

Posted Thursday 4:30 PM ET - MARKET COMMENTS FOR FRIDAY – I am going to take Friday off so I thought I will post my observations now. The price action Thursday was very lackluster, but we did learn a few things. 1. The 200-day MA was tested for a fifth time in the last two weeks. 2. Support held and the SPY immediately bounced near the open Thursday. 3. We saw follow through buying late in the day Thursday and the market closed on its high of the day. 4. Selling pressure from end-of-the quarter fund selling has run its course. Since settlement is T+3 those adjustments need to be made this week. 5. Bad news has not sparked selling. The spread of the virus and worse than expected initial jobless claims did not lead to a technical breakdown. As far as I am concerned the market bid is still strong and I expect it to improve as earnings season approaches. This is a light news cycle and we are headed into a major holiday. Expect tight intraday ranges and low volume. Look for opportunities early in the day and set passive targets. Swing traders should try to sell bullish put spreads on strong stocks, but keep your trade count to a minimum. These are the “summer doldrums”. Have a great weekend. . . image

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