The first trading day of the month is historically bullish. Today was exceptionally so. After such a strong breakout above 1950, the SPX has a very good chance of testing new highs, never mind the long term downtrend line from the previous peaks.
The SKEW remains low, the VIX has broken decidedly back below 19 and the NASDAQ market led the rally today. All indicators are bullish!
The RUT lagged the market and therefore I sold an April 1110/1120 call spread for 1.60 right at the close today. I expect to trade out of this on any day we have a slight pullback as time decay and a small bearish move will take 50% of the value out of this spread.
