Monday, September 7, 2015

Sept 7 - Still in middle of range

Closed out Fri spreads bought on Thurs and holding SPY put spreads expiring this week.  As before the higher probability play will be buying into a break of lows on positive divergence and weaker volume.

We are in a range within a range.  End of day Friday wasn't the best time to take new positions long or short as we are right in the middle.  We also have a buy on stochs which might make a surprise for shorts Tues.
 Volume increased from last 2 days but not impressive.  Hard to read much into it because most traders were long gone before the close.  We will see the market's true hand Tuesday.  An ideal long setup wold provide positive divergence on both the hourly and daily.

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