SPX settled at 1450.11, roughly 5 points above the short strike of the original put spread in our August cycle Iron Condor strategy. If we had only been smart enough to wait for the 58 point increase from yesterday’s close. Okay, enough sarcasm.
Yes, SPX settled at 1450.11. The lrage move was sparked by the fed’s decision to cut the key discount rate by half a percentage point to 5.75%. I will discuss the August cycle Iron Condor trade in great detail in the Expiration Report due out later this weekend (paid subscribers only).
As for next week, we could see a continued move to the upside Monday as post-expiration, particularly the trading day following expiration is bullish. Read yesterday’s post for more details. However, I do feel we will see sellers test the waters once the short-term bullish froth settles. I would not be surprised to see weakness once Monday’s seasonal tendency passes.
Sorry for the short posts recently. The posts will be back to normal next week and I will ahve a few new additions to the daily commentary. Have a nice long weekend!
Overbought/Oversold for August 17, 2007
SPY - 52.1 (neutral)
IWM - 60.3 (neutral)
DIA - 42.3 (neutral)
QQQQ - 39.9 (neutral)
GLD - 33.2 (neutral)
OIH - 43.4 (neutral)
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Andrew Crowder, www.crowderinvestments.com