EOT Position Update – September 9, 2015
Market Snapshot
The summer is coming to an end… and the telltale signs of fall are all around. It’s a great time of year, I’m looking forward to the first day of sub-100 degree temperatures and evenings that actually dip below 90 degrees here in the desert.
Not to mention, college football is already underway and the NFL is kicking off their season tomorrow.
It also means many of the Wall Street heavyweights will be returning to their posts after their summer vacations. So we should see trading volumes and money flows pick up steam as they position themselves for an end of the year push.
The ‘sell in May and go away’ crowd is feeling good after seeing the S&P 500 tumble more than 6% from May. They’re surely planning their attack for re-entering the market sometime in the next few months.
One thing’s for sure, there are some good buying opportunities after stocks suffered their first 10% correction in years. But before they dive headlong into this market, they’ll need to reconcile the risk of slower global economic growth, weak oil and commodity prices, and a Fed that seems hell bent on raising interest rates this year.
At this point, there’s no catalyst to get investors to buy.
As a result, the market is losing momentum and appears to be setting up for a bigger move to the downside… at least until the aforementioned heavyweights and ‘sell in May’ investors see enough value to justify the risk of buying.
Let’s move onto the updates…
Position Updates
Just a quick note: Remember, we won’t update every open position every week. We try to focus on the positions that have some significant news or price movement.
MAR October 16th 2015 $72.50 Puts
MAR is a new trade we rolled out today. Buy these options below $2.80… but don’t chase them if the option moves above this price. Support is at $69.00 and again at $65.00. Resistance is at $73.00 and $74.00.
NTAP September 18th 2015 $30 Puts
NTAP has been stubbornly resistant to further downside in this choppy market. The stock is holding below resistance of the multi-month downtrend. If it fails to break out above this technical level, aggressive traders could get another shot to profit from a selloff over the next week.
Category: EOT Update
