Wednesday September 24, 2014 – Daily Market Update

In yesterday’s daily update, I mentioned that support
in the S & P 500 should be at 1,984.40.

Today, the market came down to 1,978.63 and promptly
reversed.

So, it stopped 5.77 underneath the support line I
called for.

Since stopping at 1,978.63, it has run up to hit 2,000
again.

It is right back to the key level of 2,000!

That is an intra day swing of over 20 points.

I mentioned yesterday there is a key indicator that can
help time these turns. I could explain it, however, it
will not help you because it is dynamic. Dynamic in
that the price where I expect it to pivot or reverse will
change over time depending upon the price it trades
at it.

So, it will not do you any good, unless you know
where it is trading and where it has been trading.

My members have access to that information and pay
for it, so it is not fair to share it here for free.

So, the question is how can you take advantage of
this information?

Well, a simple way to use it is to buy calls on the SPY.

Let’s see how that could have worked out.

This morning, the SPY bottomed at 197.52.

The $197.50 call was around $1 this morning. After
the rally, they are trading for $2.27. Not a bad
return for one day.

Say you went 50 cents out of the money and bought
the $198 call. They would have set you back around
65 cents.

After the rally, they are trading for $1.83.

Even better, almost a three to one return.

That is just one way to take advantage of the turning
point.

But, you have to know what you are looking for.

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