Analysis for short term option trading!
Trade Recommendations- SPY still appears to have some bullishness in her. Though weak, it still looks like it wants to rise. News around the world is favorable for Slovakia. Oil is on the rise as the dollar slows. This usually means a more expensive market. So we are bullish on the SPY today. But do not be surprised at a slight move of no significance.
Bollinger Bands- SPY has neared the top of the Bollinger Bands with the weakest push yet of this bullish drive north. Forming a low doji signifies a weak reversal. Here we can just call it a lack of strength. Hitting a major point of resistance as well as reaching the top of this (possible sideways formation) we would now expect bearish influence over the SPY.
RSI- the RSI has continued to show strength in the SPY’s latest journey toward bull country. This indicator continues to follow the stock, not revealing any changes that maybe taking place. About all we can see here is a leveling out of yesterday. This possibly may reveal a lack of will power to continue up, but it is speculative at best.
Balanced Volume- the SPY is still showing strong interest at the stock continues to bounce its way upward. Knowing this indicator uses volume and the “end day price” we can see a lot of strength. But now, will it continue to follow the upward trend or will it bounce back and people take profits from what it has gained?
Money Flow- money has consistently flowed into the stock. It still looks healthy; does not look like people are getting out of the stock yet.
Outside Market Influences-
JPMorgan Chase says its third-quarter income fell 4 percent on weaker investment banking and trading results. The New York bank earned $4.3 billion, or $1.02 per share, compared with $4.4 billion, or $1.01, during the same quarter last year. Analysts surveyed by FactSet forecast the bank would earn 91 cents per share. This is less than the $.93 forecasted. May not be a good day because of this.
Stocks in Europe fell Thursday as investors await more details over exactly how European Union officials plan to tackle their debt crisis and Chinese trade figures stoked concerns over the outlook for the world's second-largest economy. Stocks have been buoyed this week as eurozone officials finally indicated they are willing to take decisive action such as larger write-downs on Greek debt and a push to make banks strengthen their capital against resulting losses.
Foreclosures continued to plague the U.S. housing market last quarter, while a a growing backlog has caused the length of the foreclosure process to drag on and on. Nationwide, foreclosure filings totaled 610,337 in the third quarter, an increase of less than 1% from the previous quarter, said RealtyTrac, an online marketplace for foreclosed properties.
Google Inc's plans to acquire Motorola Mobility Holdings Inc and the health of its advertising business will be in the spotlight when the Internet search leader reports quarterly results on Thursday. Analysts expect Google to deliver solid financial results in the recently ended quarter, with revenue up more than 30 percent year-on-year at $7.21 billion.