Yesterday, I posted a blog post called Volatile Coiling in S&P Market— and that coiling basically led to today’s big rally that I predicted!
Notice the pink i? ii? and iii? suggesting a rally overnight. We got that rally overnight — and continued follow through in wave 3 below:
While the chart only shows a rally towards 1921, we actually closed around the ES1930 region – so an additional 10 points on top of what’s shown above.
Last Tuesday, I posted:
“If wave A was from 1804 all the way to 1904 — basically 100 points, and wave B fell to 1851 — so basically 53 points, we could get potentially another 100 points up ideally. That would bring is to 1951. However, something tells me it won’t get that far — so if we take the golden ratio of 61.8% and apply it to that 100 points, then that gives us 62 points up from 1851, which would be 1913 – which is reasonable as a target (assuming we break the resistance).”
So we just exceeded the 1913/1915 minimum target region and we hit 1932 at the close. At this point, I am inclined to say that we may reach the 1950-1980 region I originally expected. The reason is because it took so many days this whole week to set up this 3rd wave — and the 3rd wave was just today. i would imagine it should go on for a few more days — so we should allow a little more room to the upside — so 1950 seems reasonable. I would like to see 1980 hit, but do not know if will actually get there.
We closed out our SPY short put spread of 186/181 as well as the 184/179 strikes to collect $1,800 and $900, respectively — combined for $2,700 for this week.
Our bet was that SPY would stay above 186 this week, and expired SPY this week well above 192. So even though there was a lot of up and downs during the week, our subscribers banked thousands of dollars this past week. Congratulations to our subscribers!
As recommended to our subscribers last Friday:
Out of all indexes, the Russell rallied the most – particularly in the last 30 minutes of the trading day.
We are now at the 1034.5 mark – which is what I was expecting – however the Russell’s performance earlier this week was fairly weak compared to S&P and Nasdaq. Yet, all of a sudden, starting from just before today’s market open, the Russell just took off. But then it stalled during the day when the S&P continued to rally, but the Russell just stayed put. Then it wasn’t until the last 30 minutes that the Russell just blasted to the upside.
Here’s a micro look at the time frames of the Russell rally: