During this holidays season I was lazy at home and had not have much time (and will) to do any review of the market and our positions. So, I will keep it simple today:
The markets broke up through their resistances recently and they are in clear uptrend (see SPX chart and IWM charts below). Both have a great potential to go up. And I Expect that uptrend to continue.
If we use measured move on SPX our price target is at 3,225 level and I believe we will get there. We had a small pullback to 3,100 level, which was a healthy pause for more growth. We are now clear to move higher again. The question is how fast we are about to move. We may move up alongside the upper trend line in which case it would take longer to get to the target (definitely not this next week), or we may break out that trend line and move faster. In that case it can be worrisome as that would be too fast move (like a parabolic move) and due for a significant correction. But, as of now, for the next week I expect mostly bullish move (FOMO chasing and window dressing).
IWM is in the same boat. We broke a fairly long sideways channel after forming a bullish flag. Our target is still at 173 level as before, which is a measured move of the previous channel width (14 points channel, breakout at 159 + 14 points = 173 target). Let’s see how long will it take to get there. The trend is a bit steeper for IWM so the move to 170 level may be faster.
#43 – PBCT Naked put – https://tinyurl.com/sajds2z
#44 – PPL naked put – https://tinyurl.com/r6u4xjw
#45 – IWM naked put – https://tinyurl.com/yx6ae54e
#46 – IWM strangle – https://tinyurl.com/vq8gtcs
#48 – OXY bull put spread – https://tinyurl.com/v4nq6n5