Market Overview:
I was completely wrong about the break of the SPY 126.15-127.80 range. The market gapped up today and it didn't look back. Just about every individual stock I look at is showing overbought conditions, particularly the financials and the ags. I think we'll see a pullback to at least SPY=128 before the end of the week. If not, I will get hammered.
SPY Options Trading:
I sold to open more weekly 128 calls on the pop today. I was way too early with the selling and I now find myself down big. I also started buying Feb 126 puts today as I'm trying to dig myself out of hole. I'm looking, better to say hoping, for a pullback to 128 tomorrow. If that happens then I'll look to close out my SPY put position.
Key Levels in the SPY:
Resistance: 128.72
Support: 128.30, 128, 127.50
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