Weekly Stock Market Commentary 1/23/2015

By Lawrence G. McMillan

The market continues to be volatile, with $SPX bounding from support at 1990 to resistance at 2065 swiftly in the past four days. Outside of that range, there is further support at 1975 (the October lows) and resistance at 2090 (the all-time highs). As a result, the $SPX chart remains neutral at this time.

Indicators Bullish, Waiting on Price Action

By Lawrence G. McMillan

Tuesdays after three-day weekends often produce wide swings.  Yesterday was no exception.  A higher opening was almost immediately followed by severe selling – knocking $SPX down almost 25 points.  But then the bulls found their buy buttons, and the market rallied back to finish slightly on the upside.  The support at 1990 remains intact, and it is an important level.  Resistance is at 2030 and 2065, the latter being the more important one.

Weekly Stock Market Commentary 1/16/15

By Lawrence G. McMillan

The stock market has experienced huge moves so far this year far greater than have been seen since the fall of 2011. There has been a lot of back forth action, but the bears seem to be gradually getting the upper hand. Yet, the indicators are mixed and it could be that the Standard & Poors 500 Index ($SPX) is just in a wide and volatile trading range.

The Option Strategist Newsletter Volume 24, No. 01 Preview

The feature article is our annual assessment of last year’s recommendations.  Not only are the results broken down in a great deal of detail, but there is some commentary on what might be changed in order to improve results and avoid past mistakes.

Our market comment is on page 7.  The extreme volatility in the broad market has resulted in a number of technical signals being issued this week.  As a result, we are going to recommend a trade in SPY (page 9).

There is naked put write recommendation in Gamestop (GME) on page 8.

Weekly Stock Market Commentary 1/9/2015

By Lawrence G. McMillan

The market has been on a rather wild ride for over a month now. With the action of the last two days, our indicators have swung back to a bullish status, for the most part.

The fact that $SPX has now risen back above its 20-day moving average and has closed above 2060 is positive. A second day's close above 2060 would be confirmation of the recovery in the $SPX chart.

Equity-only put-call ratios have rolled over to buy signals.

McMillan Analysis Quoted in Recent CNBC Article

Investing Editor of John Melloy recently wrote an article for CNBC Pro exploring popular stock market correction strategies. Ryan Brennan of McMillan Analysis Corp. was quoted in the article: 

'To hedge an entire portfolio, we recommend the purchase of $VIX calls that are roughly 7.5 points out of the money,' said Ryan Brennan of McMillan Analysis Corp. in an email.

Weekly Stock Market Commentary 1/2/15

By Lawrence G. McMillan

Stocks stumbled into year end, with a couple of down days, the second of which was downright nasty. But was this just illiquid, year-end manipulation (as the bulls suggest) or is it something more serious? It's a little early to tell at this point, but if things don't improve quickly, then the bears have a chance to engineer a correction.

The Option Strategist Newsletter 2014 Market Review

By Lawrence G. McMillan

Frankly, I don’t put much credence in long-term projections, and neither should you.  How many people have you seen on TV making predictions without the least amount of statistical backing?  Those would better be called “guesses” or “wishful thinking.”  The worst (or best, if you’re cynical) was the CNBC reporter who made sports predictions for next year.

Weekly Stock Market Commentary 12/26/14

By Lawrence G. McMillan

The reversal off the December lows was sharp, powerful, and even record-setting. The chart of the Standard & Poors 500 Index ($SPX) has returned to a bullish status, now that new all-time intraday and closing highs have been registered.

Weekly Stock Market Commentary 12/19/14

By Lawrence G. McMillan

In nearly 45 years of trading, I don't think I've ever seen a market as wild as the one has been this month. Let's review the entire technical picture. First of all, the chart of $SPX has not yet returned to a bullish state. $SPX would have to trade at new highs (above 2080) in order to turn the chart bullish again.

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
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