Well we certainly got what I was looking for in my last update a couple days ago. At that time I was switching out of my profitable longs on Boeing, Upstart, and the semiconductor index (PayPal did not do as well) and into some shorts on the SPY. I have 605 and 601 put spreads on the SPY. The SPY short legs expire this Monday and this Wednesday, so in very good shape coming into the week.

The key level is still the opening of the year which is 585 in the SPY.  If the SPY gets around that area it’s a good buy level. All in the context of a broader trading range which is likely to whip back and forth for several more months. 

Would like to see further weakness, as there are still a lot of good stocks in uptrends which have good potential to buy the dips. On the short side DELL looks POSSIBLY vulnerable. I will look to see how it trades Monday. 

If you like to take advantage of high premiums the very short dated options could provide some interesting opportunities on calendar spreads. For Monday I don’t expect more than 2 or 3 points of downside in the SPY. More upside than that is possible but I think a 5 or 6 point range in the SPY is most likely for Monday — 2 or 3 points on either side of unchanged.   

Thanks,

Joe