How about that bounce today! As big of a rebound it was, it wasn’t overly surprising. We had a lot of support levels converging at the close from yesterday and the open today, so that “boing” ended up being very strong. The problem I see is that volume wasn’t overly spectacular.
Unfortunately, I wasn’t able to capitalize on the move today, but I am glad I recognized that it was a strong possibility. Today shows some bullish strength, but I would not enter any swing trades until (looking at $SPY) we close above the neck-line of this short term double bottom (seen in chart). Notice that MACD, while turning up, has not crossed yet. The MACD cross will provide better evidence of the resumed bullish trend which my happen once we breach the aforementioned resistance level. All that being said, there is still the chance of going bearish, which would be confirmed on a close below 159.72.
FCX short. I bought 3 options yesterday before the close. Unfortunately, we did not get to my target of $29.00 and I’m not sure how much I like this trade. I decided to move my stop lower to $30.20 which is between the gap from the gap down yesterday. We will see what happens tomorrow, but I am planning on taking profit at my target, if it is reached.
Stay tuned for a few setups for tomorrow.