June 5th, 2017 Watch-list

Evening traders! Another week of trading coming up, and last week we saw the market see a strong rally topside with the DJIA closing up 62.11 points Friday. We've seen the market go up and set a new all time high this last week. Heading into the next week, we are in uncharted territory with no major levels of resistance in sight for the DJIA. We'll have to take it day by day and look for some signals on those daily and weekly indicators for the DJIA and SPY. DJIA below with key support and resistance labeled. 

Potential Plays Heading Forward: 

Anytime we see such a strong move topside in the overall market, it makes things tough in terms of reversal plays. However, I do have my eye again on SPY puts. We had good initial success last week with the puts with the 240's moving from .50 to .75 per contract intra-day. The goal will be again to look for a quick downward turn and move in puts for the SPY. For now, I'll be looking for a 3/4 daily buy signal on the SPY daily chart. After that, we want to see a lower high form on the 15 minute chart. That, along with the daily buy intact, is where we would look to target an entry in the 243 Jun 9th puts. However, that is subject to change each night as we move forward if we do not get a buy signal tomorrow. With time decay we will end up moving the expiration date later as time goes on. Chart below for review with key support and resistance labeled. 

Play Type: Options Puts

Buy Signal: 3/4 daily buy signal along with a 15 minute lower high on the 15min SPY chart. 

Expiration Date: Jun 9th (Subject to change)

Strike: 243 (Subject to change)