Last week I wrote that the most likely scenario would be a very rangebound market, which ended up being exactly how it played out. Chop chop all week long. Given that next week is the last week of August and right before Labor Day weekend there will likely be a continuation of very choppy days....
I said last weekend that I didn’t think the lows were in yet and even though I didn’t anticipate a gap up Monday, I did have enough sense (with the help from our open interest graphs) to not chase things. Instead we were patient and looked more for short set-ups which worked out well. At...
Please note that open interest often changes during the week when a stock has a big move. This provides a great starting point, but it would be up to you to continue to track it throughout the week if you are trading one of these names. If it’s an earnings name, the chart will be updated the […]
Last weekend I discussed being very careful getting long even if there was a large rally where everything looked good. Looking back that advice was probably the best thing I did all week. It’s bad enough when you lose money being positioned wrong, but what I have found over the years is when positioned wrong...
Once again SPX closed pretty much at the exact spot it closed the Friday before. Lots of chop the last couple weeks without many good plays. Breakouts aren’t holding well, good earnings are being sold, bad earnings are being hammered and we are left with very few good looking plays. At some point one side...
Open Interest Clues to Next Week
Last week here along with the SPY open interest notes, I shared my thoughts that I did not believe the lows were in yet. The open interest turned out to be very helpful (as it usually is) because when SPY traded above the high calls for Wednesday’s expiration (which happened to also be technical resistance) […]
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