Credit Spread trigger tomorrow on SPX
November 4, 2008 by Daniel Beatty
Have the markets hit bottom? Well after todays rise we have broken a reistance point on the SPX at 1000, so tomorrow is the day to look for the trigger on a bear call spread or a continuation of the bull rise that we have been experiencing for the past few trading days.
A good trader does not guess, a good trader does not gamble. A good trader waits for confirmation not guessing tops and bottoms or even continuations. If I were to guess volume has been a little light the past two trading days as we approach resistance, which usually indicates that the resistance will hold and the stock or index will bounce back. A break of resistance on increasing volume is a good sign of a continuation or a breakout of a trend. In this case I will guess a drop back tomorrow below resistance of 1000 in the SPX, which will trigger us to sell a bear call spread.
We NEED to confirm this, which means waiting to see what tomorrow brings - looking for a trade for Thursday.
bear call spread, confirmation, resistance, spx
[...] going down, or going sideways. Last week I stated we were at a crucial point in the market - read Credit Spread trigger tomorrow on SPX and we definitely hit the trigger to sell another Bear Call credit spread. Well that spread is [...]