Markets Post Gains For The First TIme In 3 Weeks

Broader Market Weekly Performance: Dow +0.69% S&P +1.70% Nasdaq +1.97% Russell +2.29% www.BookingAlpha.com Check out my latest interview on Benzinga and TraderInterviews.com MARKET UPDATE: Markets bounced this week after getting slammed last week. Economic data was so-so but the Euro headlines were fairly quiet which allowed the markets to find some footing. Thursday's afternoon trading and all-day Friday trading was very light ahead of the long Holiday weekend. Although closing in the red Friday, overall markets posted decent gains for the week, considering last week's beat-down. The Dow was a laggard this week bouncing considerably less than the other indexes. The markets are likely in a trading range until the next round of headlines, most likely ones from Euroland, the downside is likely to be tested as the 200 Day MA lies just below current prices for most of the indexes. The Russell is the only index to visit its 200 Day MA which provided support for its bounce. A further bounce may be in the cards but the selling is likely not over either. Markets are in a no mans land between their MA's. A pullback and test of the 200 Day MA's would setup a nice potential area for a bounce....if Europe can keep its act together. Navigate wisely and stay profitable, my friends. Happy trading! BOOKINGALPHA UPDATE: Monthly Trading Service Commentary: We took advantage of the portfolio starting the week in 100% cash and opened 2 new Iron Condors on IWM & SPY. After getting nabbed in a few positions last week in a sloppy opex where markets fell hard, this week the VIX remained elevated and markets bounced. The bounce in the market allowed us to deploy the news spreads with very juicy credits. Some are calling for a trading range over the summer while others expect further deep pullbacks. The put legs of both Iron Condors are very far OTM to insure against further declines in the markets while the calls are near the recent tops printed in April. If a trading range does materialize, these positions will reap profits quickly as juicy credits were received to open the trades and volatility will collapse in that scenario. If volatility picks up, each of the legs of each trade (call legs & put legs) will hedge the other and the juicy credits received will provide a lot of room to work with if adjustments are required. While losses are unfortunate, they are a part of trading. Looking at past trading years you will see drawdowns like this do occur and ultimately, how we prevailed. This is not a justification, merely a reminder that this situation is still within the realm of normal portfolio gyration. While it may be uncomfortable and is surely no fun, my position sizing allows for these drawdowns providing enough capital to recover. See past year's results and let them speak for themselves. For more information please read: Generating Alpha Comes With Volatility Monthly Trading Service YTD vs S&P 500: -16.43% YTD BookingAlpha Monthly Advisory vs. +4.38% YTD S&P 500 See Trading Record Weekly Trading Service Commentary: We bounced back from last week with 2 winning trades this week: 1) IWM 70/72/78/80 Iron Condor - Expired worthless for +18.34% in 4 days 2) SPX 1265/1270/1355/1360 Iron Condor - Expired worthless for +8.70% in 3 days We recouped most of last week's losses with these 2 trades and the portfolio is back to 100% cash. With the VIX being elevated, we have a couple potential plays on the drawing board to take advantage of enhanced option premiums for the upcoming shortened trading week. While losses are unfortunate, they are a part of trading. Looking at past trading years you will see drawdowns like this do occur and ultimately, how we prevailed. This is not a justification, merely a reminder that this situation is still within the realm of normal portfolio gyration. While it may be uncomfortable and is surely no fun, my position sizing allows for these drawdowns providing enough capital to recover. See past year's results and let them speak for themselves. For more information please read: Generating Alpha Comes With Volatility. Weekly Trading Service YTD vs S&P 500: -11.92% YTD BookingAlpha Weekly Advisory Portfolio vs. +4.68% YTD S&P 500 See Trading Record Check out the BookingAlpha Trading Record Check out my latest interviews at TraderInterviews.com & Benzinga: Subscribe today and don't miss out on your next profit opportunity! Review us and read what other have to say at Investimonials!