It has been one heck of an October so far.
The S&P 500 is still fighting to get back in positive territory on the month, while members of the Splash Zone are in the green and adding to the profits accumulated throughout the year.
Check out Ryan's trading results so far in October:
This market has been tough and frustrating for so many traders, the best thing you can do for yourself and for your nerves, is to trade along side of someone who has seen and traded through nearly every kind of market environment that can be thrown at a trader.
Managing the risk, increasing the profits and knowing the amount of capital to put to work in various stages of the market has been the key to successfully trading a difficult market.
But trading with Ryan Mallory in his chat room and receiving all his trade alerts isn't the only benefit to trading in the SharePlanner Splash Zone, you will also become a member of the best community of traders out there where traders of all types come to each and every day to discuss analyze options strategies, market conditions and how they manage their trades. There's nothing else even close to being as good!
You can also check out all of Ryan's trades and past performance for all of 2014 and the years before by clicking here.
With your membership to the SharePlanner Splash Zone you get a Free 7-Day Trial, and access to the Splash Zone Chat Room and email alerts and text alerts (international numbers too).
Economic reports due out (all times are eastern): New Home Sales (10)
The market is all over the place - just think, last week SPX was on the cusp of possibly dipping below 1800's and into the 1700's. In fact, many thought that it would.
But here we are now in the latter parts of October and SPX currently sits at 1954. That is a HUGE reversal and the monthly chart shows it with its insane hammer candle.
I remain skeptical of this market and my exposure to this market shows it. Only 50% of my capital is at work and I won't hesitate to lessen that if the market suggests doing so.
But when you look at the SharePlanner Reversal Indicator on both time frames, the outlook is promising and a reversal is clearly underway here, of which could easily last a few weeks to a couple of months.
Here's the Daily SPRI:
Here's the Weekly SPRI:
As you can see the bulls have control of this market. I don't put it past this market to change that mentality at any time here. But while the market is pushing higher and the SPRI is pushing higher, there is little reason to be net short this market at the moment.
Economic reports due out (all times are eastern): Jobless Claims (8:30), Chicago Fed National Activity Index (8:30), FHFA House Price Index (9), PMI Manufacturing Index Flash (9:45), Leading Indicators (10), EIA Natural Gas Report (10:30), Kansas City Fed Manufacturing Index (11)
The bears are trying to see if it is safe to come back out and play yet.
They have been ripped to shreds since last Wednesday's bottom and have been no where to be found since then. However, despite the huge bounce, there hasn't been any significant repairs to the charts and the V-Shape bounce lingers an overdone dead cat bounce.
With that said, I don't recommend getting heavily short here. If you want a starter position to counter some of the existing longs you have, then so be it, that's not a bad idea. But slowly dip your toes in the water here if your desire is to get short.
As for me, I actually wouldn't mind seeing another downturn emerge here. The trade setups are amazing to the short side as you will see from the short setups below.
Here's the short trade setups to watch:Read more...
Economic reports due out (all times are eastern): MBA Purchase Applications (7), Consumer Price Index (8:30), EIA Petroleum Status Report (10:30)
Economic reports due out (all times are eastern): ICSC Goldman Store Sales (7:45), Redbook (8:55), Existing Home Sales (10)