The Chaikin Power Gage Bull:Bear ratio has fallen below 1. Since it's a mostly fundamental reading of market conditions and often a harbinger of things to come, we are treading cautiously. Trend trades work best in bullish market conditions. Technicals and Fundamentals suggest further choppiness, which will likely persist until economic data, earnings or something surprising from the Fed change things. Utilities are showing strength, leading all sectors with a PG ratio of 8, a rising Chaikin price trend, a rising OB/OS Chaikin Oscillator and strong relative strength vs. the market. We note that the TLT (ETF's that tracks 2o Year Treasuries) broke above an important resistance line, and when bonds rise stocks usually fall. -- AA, Mike O
See our full market conditions analysis here.
While the market is weakening overall, it is oversold and we will play any bounce with swing trades. AA is taking a short term option spread trade today on DAL (Delta). He sold the April 34 and bought the 32 puts for a credit of $.60. He has a return potential of 47% and a 70% chance of making at least some money on the trade. This is an out of the money bull put spread. DAL threw an Oversold Buy signal earlier this week and is in a strong industry group.
See our full market conditions analysis here.
While the market is weakening overall, it is oversold and we will play any bounce with swing trades. AA is taking a short term option spread trade today on DAL (Delta). He sold the April 34 and bought the 32 puts for a credit of $.60. He has a return potential of 47% and a 70% chance of making at least some money on the trade. This is an out of the money bull put spread. DAL threw an Oversold Buy signal earlier this week and is in a strong industry group.
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