c505218304b50c59c3659f6dda43bae7-links-0–>The S&P500 closed, yet again, in record territory – and we were positioned to profit from it.
I admit this week we might fall short of our $1,000 weekly goal – in large part because volatility is on the low side and we had a lot of fake outs to the upside that got reversed. Because of where we are in the markets, I kept a smaller than usual position size. The waves have certainly been bumpy and it was not easy to hold. Also, it was important to keep the position size small initially since I had a feeling there might be an opportunity to get a lower price.
A few days later, when the market dropped towards 2171 — I added to the relatively small position we had.
I believe we are somewhere around $600 profits so far so not quite our $1,000 goal but hey, I’ll take a profit any week.
SPY Aug 214 Calls – purchased in the green circles as follows:
Bought 2@ 2.78 (ES @2156)
Bought email@example.com (ES @2177)
Bought firstname.lastname@example.org (ES @2171.5)
Then sold 2 @ 4.4 (ES 2179)
And sold another 2 @ 4.87 (ES 2184)
The drop to 19.95 at the close for silver was much deeper than I expected. If silver breaks the 19.9 support region, then that increases the chances of further downside.
Indeed the market went up towards 20.5 in what appears to be a wave 1. However, this wave 2 has been longer than I expected and deeper — retracing back below 20. Silver needs 19.88/19.9 region to hold to maintain the momentum. Really imminent upside needs to happen soon as this is dragging out longer than I would like. I would say movement needs to happen by Friday morning, otherwise something else is playing out.
Gold needs to maintain 1339/1340 region in order to maintain pattern for upside. At the moment, it is retracing deeper than i expected getting to as low as 1341.40.
Metals definitely don’t look so hot at the moment. But I also have to need that wave 2’s often come that close to failing the wave structure – and then wave 3 begins. So it’s a tough call. The key is keeping position size small and manageable to withstand these big moves.
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