The 100-Day MA Will Hold Through August Options Expiration

WE HAVE BEEN NAILING TRADES IN THE CHAT ROOM EVERYDAY. CLICK HERE TO SEE WHAT WE ARE TRADING TODAY Posted 10:50 AM ET - The market is tired near the all-time high. IBM/United Technologies weighed on the Dow yesterday and Apple/Microsoft are keeping the pressure on today. Apple's earnings last night were excellent, but they missed inflated expectations. I don't believe this dip will be sustained. Support at the 100-day moving average (SPY $206.50) will hold. The FOMC meeting next week could spark a small round of profit-taking. The Fed will not show its hand because it doesn't want to spook the market when it goes on recess. Traders will rejoice and the market will push higher. A market breakout is unlikely. We needed strong results from Apple and Microsoft. The flash PMI's on Friday will be in line. China's numbers have been improving and Europe/US results will be sluggish, but in line. Any market decline will present a buying opportunity. I still favor selling out of the money bullish put spreads on stocks that are breaking out after posting strong results. If the breakout fails, buy back the put spread. The price action should remain stable through August options expiration and the 100-day moving average should hold over the next few weeks. Support and resistance are formidable. The summer doldrums are likely to set in and you need to focus on individual stocks. Earnings releases will provide action for the next couple of weeks and then we will grind to a halt. Focus on bullish reactions to earnings announcements. . .

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