Posted by Pete Stolcers on March 17
Posted 9:00 AM ET – Happy St. Patrick’s Day!
Wednesday the market staged an impressive 20 point S&P rally after the FOMC statement. Stocks took a breather yesterday and the SPY found support above $238. By the end of the day most of the losses were erased.
Quadruple witching doesn’t appear to be much of a factor this quarter. Stocks are flat this morning and it looks like we are in for a quiet day.
Considering that the market was able to shoulder the second rate hike in three months, the price action this week was bullish. Look for a grind higher next week.
Economic data points need to be strong to fuel this rally. Flash PMI’s will be posted next week.
Swing traders should be long calls. If the market trades above the first hour high today you can add to positions. I am expecting the SPY to challenge $240 next week.
Day traders need to wait for signs of strength before getting long. Yesterday the market was trapped in a very tight range and conditions were tough. Once the first hour range is established I will place an alert at the high and the low. If my alerts are not triggered I will watch the NCAA Tournament.
This is quadruple witching so we can expect some “noise” with an upward bias. If we were going to see fireworks it would have happened yesterday.
The QQQ already made a new all-time high and it is strong relative to the SPY. Oil is up so energy stocks will not weigh on the market. Focus on tech stocks today.
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