Cloud Marking Bullish for SPY

2020年5月7日

SPY has turned bullish and should hold above 278 during this market consolidation based on solid Span B that has been tested and held. Based on futures markets, we could see an opening tomorrow (5/7/2020) around the low 283 mark. Assuming no crazy news comes out tomorrow to drive markets back down to test the 278 level we should see prices rise to the 287 levels which will put us solidly in the 38% fib extension level. Getting the price above the daily Tenkan we could see 291 on Friday. I don't expect any kind of crazy rallies though (unless something big happens in the pharma world) with implied volatility falling to 0.31.

With many states freeing up their economies we should continue to see the bull market, though it won't be explosive it would take a serious blow to get us into bear territory again (at least as far as cloud trading is concerned)

Game plan would be to do some OTM put verticals in the low 280 mark and pick up some long call options. I refuse right now to hold beyond the weekend (call me crazy) so May 8th contracts are my play but your risk profile may allow for farther out contracts.

Also planning on going long on some /ES futures. Will watch how the market runs over night but game planning a buy in at the TK cross on the 15 min chart which looks like will be in the 2850 range and will hold through 2865 with stop at 2840.