Buy A Few Calls and Hold Overnight As Long As SPY $214 Holds

Posted 9:30 AM ET - Yesterday the market rallied above the 100-day moving average and it was able to hold the gains. That bodes well for trading today and the S&P 500 is up slightly before the open. I am expecting a bounce into the middle of the trading range this week and the SPY should be able to get to $217. Mega cap tech stocks will post results and Apple is on deck after the close. Google and Amazon will report after the close Thursday. Traders do not like shorting the market ahead of these earnings announcements. Europe's flash PMI was better than expected and we had excellent M&A activity over the weekend. This helped to attract buyers Monday. In yesterday's comments I suggested carrying some overnight longs. I have some calls and they should do well today. I am NOT looking for a massive rally to a new all-time high. At a forward P/E of 17 stocks are fully priced. The potential rate hike in December will keep a lid on the market and a Fed official (Bullard) said that three rate hikes are likely before the end of 2017. We have a nice little opportunity to get long this week and I will not go overboard. It has been 2 months since I have suggested carrying overnight positions. Look for bullish price action today ahead of Apple's earnings. Bullish speculators are loading up on calls (Oct $115 and $120) with the notion that Samsung's woes will benefit iPhone 7 sales. This is a crowded trade and that rarely works out. I will trade AAPL after the news. We are going to be flooded with earnings announcements the next three days and the action should be brisk. This is an excellent day trading environment. . .

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