Up We Go into August 1

Only one word need be said: Up!
Terry's Model Portfolio: The August 135 SPY calls closed @ 2.22.

Market Conditions Today

Today was a high level consolidation day. The trend is up, so we are experiencing a pause right before the next upswing. The August 135 SPY calls in Terry's Model Portfolio closed @ 1.35.

Up We Go into August 1

The market is going up. We hit a low yesterday on the S&P 500 Index @ 1295. Yesterday was classic oversold conditions in an uptrend. Up we go. The trend is up.

Terry's Model Portfolio: July 19, 2011

Trade Execution: Buy 47 August 135 SPY Calls @ 1.05
Execution Time: 6:37 a.m. (PST)
Reason: Bullish conditions on daily stochastic. Falling Wedge Trend Line breached.

A Bottom Next Week: Up Trend Continues

As a rule of thumb, it is good to buy oversold conditions in an uptrend. Oversold conditions can be defined in one of several ways. One possibility is a daily stochastic reading below 20. We are there right now on the clearstation.com 9-month chart of the S&P 500 Index. Things are bullish right now, even though the news seems bleak. Another possibility is a dip below the 50-day and 13-day moving average in an uptrend. We dipped below both respective moving averages on Friday. Finally, there is a time element. We are due for a low this coming week.

Taken together, these factors suggest we are heading higher into August 1.

Interesting.

Have a good weekend!

Wink

Market Conditions for the Week

The market has spent this week correcting. We are very close to a low before the next rally. So, be on the lookout for the market to begin a rally next week. It is strange but the market remains in an uptrend. So, market bottoms are good opportunities to go long.

Market Conditions: Correction Within An Uptrend

The market appears to be correcting within an uptrend. I would give this correction perhaps 3-5 more days. Then, we should see higher prices and a price higher than the May 1 high of 1370.