Last weekend, in my Market Forecast, I wrote:
" For the new week, I think the markets will be volatile again. Although we saw a solid bounce on Friday, both SPX and Nasdaq closed below their respective daily MAs (The Dow looks a bit stronger, closing above its 20-day MA). If SPX and Nasdaq fall below the support levels again, I don't think they will hold this time. Below 1980, SPX has support around 1950, while for Nasdaq, below 4500, it has support between 4400 and 4350."
Once again, things happened as discussed in the forecast. On Monday and Tuesday, the markets negotiated with the support levels, ie SPX 1980 and Nasdaq 4500. Wednesday morning brought a quick drop, and the support levels were broken. It was like the flood gate was open, and the "water level" kept going lower. The sell-off continued on Thursday morning, and SPX went briefly below 1930, while Nasdaq fell below 4370. Buyers quickly came in. By the time, market closed on Thursday, SPX came back up and tested 1950! Friday was a positive day after jobs report came in better than expected. For the week, SPX still closed below 1980 and Nasdaq closed below 4500.
We had a really nice week, catching nice trades on both sides. 100% of our closed trade were profitable. These 15 trades gave our portpolio another big boost of over $25,000. My Ecstatic Plays Portfolio is now up +114% after just 2 months!
|GS Options Sell to close 10.00 (2.46%) of GS Oct 18 2014 Call 185.0 at 5.00000||6.38% ($300.00) Profit|
|ALXN Options Sell to close 5.00 (2.69%) of ALXN Oct 18 2014 Call 165.0 at 10.80000||111.76% ($2,850.00) Profit|
|BIDU Options Sell to close 5.00 (2.58%) of BIDU Oct 18 2014 Put 215.0 at 10.36000 ...|