Market breadth is awful and the market closesd slightly down for its 5th down day. On top of a long losing streak, reasons for being bullish abound. First, tomorrow is the 1st of November - historically an up day on the market. Also, there was a a huge spike in put buying on Friday. McMillan and others noted it as a usually short-term buy signal for the SPX. So far that has not played out.
Our bear call spread closed (way) out of the money today. That has left us with no bear calls to defend our put spreads. I am OK with that going into tomorrow, and will aim to put them on if the market does spike higher during the day.
I moved the SPX Oct31 2130/2120 put spread out to Nov4 for an additional credit of 90 cents! So, we have an opportunity to make some more money as we continue to simply roll this out.
To get more bullish, I added a small SPX Nov2 2100/2190 put spread for $1.05 credit and a small NDX Nov3 4720/4710 put spread for $1.22 credit.
I view these as relatively low risk, high probability trades as the Market Forecast is set up for upside potential in the short-term . If the market doesn't cooperate, at least downside should be limited.
