Analysis for short term option trading!
Trade Recommendations- literally, we have not changed position all week. Do not look for much to happen in the markets to day either. We may move a bit up but we do not expect any grand mover considering we have not had any yet this week. Trade either way, but best to be neutral.
Bollinger Bands— nothing changed from yesterday but a widening of the bands a little; for the last three days the SPY has pushed the top of the bands. We have ever slight widening as SPY attempts to push itself up. This is important as we wrote about before. The SPY may be attempting to move itself out of this wide trade zone and move up. So we will watch the fight today.
RSI- no changes, still bullish; the SPY continues to move with strength. This is the one thing that we can see as a fight. The SPY continues to have bullish strength as it fights to stay up and not move back down to the lower 112 level. It just does not appear to be where it wants to go.
Money Flow- money went out yesterday but we are still looking for the breaking of support before we really consider bearish strength.
Outside Market Influences-
Markets were in a resilient mood Friday, remaining hopeful that Europe will come up with a comprehensive plan to deal with its crippling debt crisis, albeit a few days later than initially thought. Europe's main stock markets all opened higher despite the surprise news Thursday that a European debt deal won't be clinched in time for a summit on Sunday. Germany and France said a second meeting will take place by Wednesday at the latest
Microsoft hits profit forecasts as Windows decline halts. Microsoft's (MSFT) FQ1 EPS grew 6.1% to $0.68 and met analyst expectations as revenue topped predictions with a 7% increase to $17.37B. Income rose throughout Microsoft's product line-up, including at its Windows division, where strong corporate sales helped end three straight quarters of declines.
Gaddafi's death has little impact on oil prices. Reaction in the oil market was muted yesterday following the death of Muammar Gaddafi, as efforts to revive Libyan oil output have been underway for months. Still, getting back to regular production won't be easy, as the government is still in its infancy and infighting could spark a second uprising.