MomentumOptionsTrading.com Morning Update for 6/20/2014
Tech Touches Yearly High, VIX 52-Week Low
The bulls continued their winning ways with the market hitting fresh highs but Tech lagged and the bears are hoping to cause some excitement with June options expiring today.
The Dow added 14 points, or 0.1%, to finish at 16,921. The blue-chips traded down to 16,858 before rebounding to end 2 points off their session high. The bulls are looking to trigger 17,000 for splashy headlines over the weekend while the bears will be trying to get below 16,800.
The S&P 500 gained over 2 points, or 0.1%, to close at 1,959.48. The index kissed another all- time intraday high of 1,959.87 shortly after the open before testing support at 1,950. The bears got to 1,952 before being turned away and a close above 1,960 keeps 1,975-2,0000 in play. Believe it or not, the index hasn’t made a 1% daily move in 44 days.
The Nasdaq slipped 3 points, or 0.1%, to end at 4,359. Tech traded lower throughout the session after an opening run to 4,372.18 and fresh 52-week highs. The pullback to 4,339 easily held new support at 4,325 with backup at 4,300. A close above 4,375 keeps my fluff targets of 4,400-4,500 in the mix.
The Russell 2000 popped a point higher, or 0.1%, to settle at 1,184. The small-caps peaked at 1,186.78 on the open before testing 1,177 and holding support at 1,175. A close above 1,190 today would be bullish for next week and a possible run to 1,200 (again).
The S&P 500 Volatility Index ($VIX, 10.62, up 0.01) traded to another fresh 52-week low of 10.42 before finishing flat. There was a spike to 10.82 midday but the bulls easily held 11.50. I didn’t hear any of the suit-and-ties talking about this as they continue to ignore the chart work for the VIX.
It has been one incredible June for the portfolio and I have once again raised the Stop Limits on a few trades. I mentioned yesterday there were 6 current trades up over 100% and there are a few more that are close to joining the club. However, it is important to continue to protect profits as I plan out the next batch of trades and play with the house’s money.
Futures look like this ahead of the open: Dow (-9); S&P 500 (-1); Nasdaq 100 (-2).