© Copyright 2022 eOption, a division of Regal Securities, Inc., Member
FINRA/
SIPC |
Important Disclosures
950 Milwaukee Ave., Ste. 102 | Glenview, IL 60025
The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of eOption which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at www.finra.org/brokercheck.
Options Disclosure: Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at support@eoption.com or via mail to eOption, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
eOption Commissions: Broker-assisted orders are an additional $6. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. A commission rate of $2.00 for equities and $3.99 + $.10/contract for options, per execution, applies to orders entered and filled by eOption's Auto Trade Desk and does not apply to customers who enter their trades directly into the eOption platform and are not utilizing the Auto Trade desk.
Broker Comparison: The competitor rates from published websites were verified on 3/1/2022 and are believed to be accurate, but not guaranteed. Commissions are subject to change without notice. At some firms, commissions may not reflect broker-assisted fees, orders over 1,000 shares, penny stock trades, OTCBB, pink sheet stocks or foreign stock orders. Firms may offer reduced commissions if additional criteria are met.
Blog & Commentary: eOption is neither affiliated with, sponsored by, nor endorses commentary and the opinions expressed are solely their own. Content is provided for educational and informational purposes only and eOption cannot attest to its accuracy or completeness. No information provided has been endorsed by eOption.com and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and eOption makes no investment recommendations and does not provide financial, tax or legal advice.
Watch This Key Price Level – It Will Set the Tone For the Week
www.1option.com
Last week the market staged a relief rally after the Fed raised rates by 25 basis points. This was better than feared and triple witching fueled a breakout above the downward sloping D1 trend line for SPY. The 200-day MA is in range and I expect it to be tested this week.
The issues plaguing the market (inflation, Fed tightening and the war in Ukraine) have not improved, but the initial shock of these events is starting to wane. The first rate hike by the Fed will not have much of an impact, but they plan to hike by 25 points for each of the remaining 7 meetings this year. The cumulative effect will matter, but economic effect may not be known for many months.
The economic calendar is light this week.
Swing traders with a 3+ week horizon should stay sidelined until we see a capitulation low or a series of closes above the 200-day MA.
Day traders should expect a rally at some point today. The momentum from last week was strong and sellers will gauge the buying conviction this week. If the market easily breaks through the 200-day MA, it is a sign of strength. If the market gets slapped down before it gets there, it is a sign of heavy resistance. Until I see consecutive stacked red candles with little to no overlap, I will favor the long side. Late day selling would be a sign of selling pressure and I will be watching for it. Follow through selling the next day would suggest that we will remain in the downward sloping D1 trading channel. This is a flat open and we should expect a quiet start to the week.
Support is at SPY $437and $442. Resistance is at the 200-day MA.
Content is provided by OneOption, LLC, which has no affiliation with Regal Securities, Inc. (“Regal”) This commentary is provided for information purposes only, and is not a recommendation, offer or solicitation by Regal to buy or sell securities or to adopt any investment strategy. Regal has not participated in the creation of the OneOption content and does not directly or indirectly endorse the content. Any reliance on this material is at the sole discretion of the reader.