Markets Continue Higher

After starting off the day with lackluster data including an increase in jobless claims and disappointing earnings from UPS and Exxon, the market meandered in a tight range barely trading in the green. In the afternoon markets found their mojo with a continued grind higher to close solidly in the green.

We took advantage of this mornings tight range to open a Weekly SPX spread that was comfortably out of the money. However, the afternoon push got within 3 S&P points of our short strike. Sticking to our trading rules, this rise in the market caused us to close the position for a manageable loss.

We then turned around and opened another SPX spread trade at higher strikes to offset the loss on the trade earlier while still giving us nice breathing room. We fell very confident about the new spread as the S&P closed right on 1400. Assuming the new trade expires worthless tomorrow for profit, we will have mitigated our risk and most of our loss, which is the name of the game.

The Monthly Trading Service remains in cash. We are patiently awaiting a nice entry point to start deploying new spreads for the May options expiration cycle.

Thanks to everyone and have a great day!

Market News and Data brought to you by Benzinga APIs

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Markets Continue Higher