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This Market Is Boring! The Melt-Up Continues

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Well, another trading day and another day of index gains. New highs in fact! I think negative days have been outlawed and I guess the next stop is Dow 36,000.

The grind northward continues unabated while the market searches for the next catalyst. Every time weakness occurs, like this morning's “pullback” of -4 S&P points, investors come to the rescue with their fists full of dollars. My S&P 1350 before 1300 prediction looks like it may come true. And with tomorrow being OpEx who knows, maybe S&P 1400 by 2pm tomorrow????

In all seriousness though, today's climb forced us to stick to our trading rules and close out the IWM credit call spread for a penny gain, literally. At least we covered commissions +/-. We hate to potentially leave money on the table by closing early. However, we hate losses more!!!! So, we made a calculated decision to close the IWM position for a flat return. By doing so, we conserved capital by adhering to our trading rules and will live to play the game another day.

That is all what this business is about: Conserving capital when a trade goes against you. If a position starts getting sideways and you are able to close for no loss and maybe a penny or two profit, that is a victory all day long!!!

The AAPL Call Credit Spread looks good going into to tomorrow's expiration but let's not count our chickens. I don't foresee anything that would put the position in jeopardy but it “ain't over til it's over”; and that is 4pm Friday. Assuming everything goes as planned and the trade does expire for full profit, we will book a nice 9.17% in 9 days.

Stay tuned and happy trading!!!!

 

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