As we complete June expiration and roll into the end of Q2, I’ve got to think caution is warranted. AAPL and BA have been high flyers but I think they’re due for a pullback and will be watching them against these levels as we get into next week.
With the kind of volatility the market navigated through today, questions about the validity of trends and positions are bound to come up. Here’s how our current book is shaping up.
Despite the major events hitting the markets this week, the daily time frame strategies I am watching are still valid.
The SPX made new, all-time highs today, and while the market is definitely strong and there are key pockets of strength to focus on, most of what I’m looking at is overbought and has the potential to revert to the mean. I’m beginning to add hedges, and we’ll look at the main focus for tomorrow, which is potential pins and expiration.
We aren’t at a euphoric state just yet, but the low put call ratio is a huge heads up that at the very least, a pullback in the market is coming. I’m placing my bet on the SPX, since the NDX looks like it still wants a new, all-time high. It may not come tomorrow, as we still have triple witching to deal with, but hedging as we get into next week makes sense. Here is how I’m doing it.
Iran eclipsed the message from the FOMC yesterday and stocks retreated from significant highs. Here’s how I am setting up trades into this volatility and in front of tomorrow expiration.
