- ChartAdvisor.com: The market is near oversold, but is still in an uptrend. Time to look for opportunities. When placing trades, we may set up neutral to mildly bullish trades (i.e., using slightly in the money or at the money strikes).
- Schaeffersresearch.com is more neutral on the market. It feels the market may trade in a narrow range in the next few weeks.
- US economic condition: despite mixed news reports, the US economy is still growing, despite its apparent slow pace to certain people. The last job report is bullish.
- International environment: Greece dropping out of the Euro zone is a potential risk factor. It’s impact on the market is hard to measure, but probably won’t be huge.
- Middle east: There is no new news on the horizon that may shake the Wall Street.
- VIX: VIX is now around 18.40. Vix has risen to pass 20 day SMA and close to 50 day SMA in the past week. This may procede further increase in volatility. However, given the overall condition described above, VIX is more likely to retreat from its 50 day SMA, rather than penetrating through it. We’ll closely monitor VIX’s movement.
Overall market: neutral to mildly bullish. This is one of the best markets for covered calls and spreads. To set up spreads, I’ll be more cautious. I’ll set up spreads below technical supports. To set up covered calls, I’ll be a bit more bullish, using strikes that are near the money.
