McMillan Analysis Corp. is pleased to announce a series of informative webinar/chat sessions with Lawrence G. McMillan, author of Options As A Strategic Investment.
Join us online at 9:30 am (Eastern time) on specific Saturday mornings for a couple of hours of market discussion and option strategy.
Attendees will have full access to Lawrence McMillan’s extensive experience and knowledge of the option markets; questions will be welcome.
...The market seems a little tired, but there are no confirmed sell signals at this time. As an aside, though, we have always kept track of the Arms Index (named for the late Dick Arms, its inventor, but sometimes also called the TRIN). It seems to have lost some relevance in recent years, but there is one thing that is noticeable: when the 10-day moving average of Arms gets down to 0.81 or lower, a tradeable market correction is not far off. The last few times this has happened, the 10-day MA of Arms fell to that level and then rebounded sharply, leaving a “V” on its chart. It is at that level now. It is rare for the Arms Index 10-day MA to drop this low. The last few times it was this low are listed below, along with a quick summary of what happened next.
Once $SPX broke out over resistance at 2940, especially considering that it was a strong gap breakout, it has not looked back. There was a slight consolidation in the 2960-2980 range, and now the Index is apparently on its way to challenge the all-time highs at 3025. The chart will be bullish as long as $SPX continues to close above 2940.
Equity-only put-call ratios continue to drop and thus they remain on the buy signals that were generated in late August.
$SPX has broken out above resistance at 2950, and that has changed the picture to a bullish one. There is now strong support at 2940 the top of the previous trading range that $SPX traversed six times (three up, three down) during the month of August. A close back below 2940 would be negative, because that would bring $SPX back into the trading range once again.
Teh equity-only put-call ratios remain on buy signals, and now the Total put-call ratio has joined in with a buy signal as well.
I’ve just finished putting together a free Special Market Report with some of my fellow traders and investors. Inside, it’s loaded with 19 detailed strategy guides explaining our favorite techniques for leveraging today’s highly volatile markets, including my chapter on Trading the $VIX Futures Term Structure.
Once again, $SPX has traversed the 2825 to 2950 range twice in the past week. First, it fell nearly the entire length of the range in one day (August 23rd) and then has come all the way back to the top of the range in the remaining four days. A breakout above 2950 would be bullish, but a breakdown below 2825 would be very bearish.
In a somewhat major new development, both equity-only put-call ratios have rolled over to buy signals in the last two days.
Capital Trading Group, LP (“CTG”), an investment firm specializing in execution and account management for commodity trading advisors, has announced the release of its new Managed Futures Podcast hosted by firm principal and alternative investments specialist, Nell Sloane.
McMillan Analysis Corp., dba McMillan Asset Management, is proud to announce the launch of its newest product.
The Volatility Capture CTA strategy is a variation of Volatility Capture that uses VIX futures on a tactical basis to hedge, instead of purchasing VIX options on a continual basis. This pure futures version has a slightly different profit graph and has the potential for better returns in most cases due to the lack of drag from the purchase of VIX options.
The $SPX chart remains bearish. There is support at 2825. There is probably stronger support at 2720-2730, the area of the March and May lows. As for resistance, the major resistance area remains 2940-2950, which is not only the recent tops, but is also the psychological resistance caused by the fact that the July 2019 activity look like a false upside breakout to new all-time highs.
The equity-only put-call ratios remain on sell signals (Figures 2 and 3).
Episode 4- Discussing Options as a Strategic Investment — With Author Larry McMillan
In today’s episode, Nell Sloane of Capital Trading Group speaks with Larry McMillan, author of the bestselling book “Options as a Strategic Investment,” popularly known as the options bible. Larry has appeared on CNBC, Bloomberg, and Wall Street Journal, and he continues to make valuable contributions to the finance industry.
In this episode, you’ll learn:
