The Rally Continues & New Spread Trade Opened

Markets jumped out of the gate and never looked back today. Libyan air strikes and continued Japanese nuclear worries had little effect on equities gapping higher at the opening and running strong all day. The SPY gapped on the open and traded in a fairly narrow range all day. Resistance was encountered at the highs of the day which coincided with the converging 50 & 20 Day Moving Averages and the round number of the 130 price level. Volume was good and the fact the market held the gains all day and rallied into the close is encouraging. The bounce from 125 off the 100 Day Moving Average has been fast and furious. Resistance at SPY 130 and the overhead Moving Averages is encouraging and some consolidation would be very healthy. A small retracement to SPY 128 would be healthy action so don't be surprised if it happens. Consolidation and digestion are good things at this stage of the game. However, if this pullback is like the others over the last year it will be straight back up to SPY 130-132 with no stop to catch your breath. That action would be ok too. So, we will have to wait and see how this predicament resolves itself.. Strength like today is a great time to deploy call credit spreads. We took advantage of the volatility and spiking option premiums to sell an out of the money SPY call credit spread to complete an Iron Condor spread. Today's call spread was placed above the 133 high far from the current market price using March Quarterly options. IWM is looking ripe for some April options spreads as well. There are a couple high probability juicy IWM spreads on our radar right now. Just marinating on the IWM spreads for now..........but getting the trigger finger ready. Stay tuned and happy trading! Check out my latest interviews at TraderInterviews.com & Benzinga: Trading has been active lately and the feedback has been great! Add your review today at Investimonials. Subscribe today and don't miss out on your next profit opportunity! TradeMonster- Get $50.00 FREE for opening a new account. Enter promo code: BookingAlpha during account opening process for your FREE $50 bucks!