Trading monthly expiration typically calls for different strategies than what you’re using for swing-based setups. The current prices of DIA and SPY give us a good reason to discuss an iron butterfly and a few ways of tweaking the spread.
We setup 2 new trades this morning, and the biggest difference between them is the expected duration. Weekly Squeezes I’m going to keep buying, anything shorter we need to pause the directional approach and be prepared for some chop. Let’s see what that looks like…
Weighting, sectors, and trade flags… put these (free) tools together to make more informed S&P trades.
Still focused on dollar, yen, bonds, gold, and more to the upside. The inflation picture will dictate how much follow-through. I also walk you through the sector scans and how to set them up for the indices.
This is my plan and some of my positions for next week. Should be fun!
Consolidation is a terrific setup if you see it and if you use this one guideline that has kept me out of trouble throughout my career: Respect the trend that was.
In the meantime, which markets are still appropriate for this environment, and what is the plan for the shift that’s coming?
