{"id":40031,"date":"2017-07-07T20:37:27","date_gmt":"2017-07-08T03:37:27","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=40031"},"modified":"2017-07-07T23:50:42","modified_gmt":"2017-07-08T06:50:42","slug":"t2108-update-170707","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2017\/07\/07\/t2108-update-170707\/","title":{"rendered":"Above the 40 (July 7, 2017) – Another Entry for Stock Market’s Yo-Yo Chronicles"},"content":{"rendered":"

AT40<\/strong> = 54.6% of stocks are trading above their respective 40-day moving averages (DMAs)
\nAT200<\/strong> = 56.5% of stocks are trading above their respective 200DMAs
\nVIX<\/strong> = 11.2 (10.8% drop) (volatility index)
\nShort-term Trading Call<\/strong>: neutral<\/p>\n

Commentary<\/strong>
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\"It<\/a>
It is not easy catching a yo-yo…<\/figcaption><\/figure>
\nSource: Giphy<\/a><\/strong>
\n<\/center><\/p>\n

There are all sorts of nicknames possible for a churning market. In this edition of “Above the 40,” I use a yo-yo to describe the market’s tantalizing lurches up and down. These moves within shouting distance of all-time highs must be frustrating bears and bulls alike who want to stick by a trade for more than a hot minute. (For example, the market gave me less than half a trading day to profit nicely from my latest put on Chipotle Mexican Grill (CMG), and I failed to seize the opportunity – the benefits of a trailing stop to preserve profits!).<\/p>\n

Friday’s catalyst was presumably the U.S. non-farm payrolls<\/a> – the jobs report – for June, 2017. Strong numbers put the market right back into a good mood. The S&P 500 (SPY) delivered the bounce that I anticipated<\/a>. The move allowed me to close out my call options on SPY with a near double. <\/p>\n

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Almost clocked a double. Sold $SPY<\/a> calls here. #122trade<\/a><\/p>\n

— Dr. Duru (@DrDuru) July 7, 2017<\/a><\/p><\/blockquote>\n