We obviously did not make a recommendation yet as nothing has happened that could potentially give us some kind of edge in crafting a strategy this month. Right now, it’s possible we’re in yet another triangle (we should call this the year of the triangle) as the SPX has etched out a pattern tracing the highs from 1328 down to 1296 on 5/22 and ever since. We note that this pattern at this particular place in the chart is technically not very bullish at all. We also note that it could be the precursor to one final leg down for the market before a scary run to the upside. So we remain in the same frame of mind as we did 2 days ago. We want to see lower lows to begin considering a bull put spread. We want to see higher highs for the bear call. The market will be closed on Monday so enjoy your holiday and we’ll revisit things again most likely after Tuesday’s close.
ABOUT US
Mario Randholm Blog. Mario is the founder of Randholm & Co. S.A.C., an investment management company dedicated to producing superior returns for its clients and employees by adhering to mathematical and statistical methods.
Disclaimer:
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
Testimonials Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.