3/10 Morningline

Blue chip stocks (SPY) continue to tease the high set Jan. 14.

The magic number is $115.14. If SPY moves through that level (and stays above it), then the bull market that began a year ago continues. If the price pulls back and never exceeds that level, then the 72% rise will count as just a bear market correction.

---

Abbreviations:
pps - Person's Proprietary Signal, ma20 - 20-day moving average, macd - Moving Average Convergence-Divergence, mfi - Money Flow Index, sto - Fast Stochastic

---

The next significant resistance above $115.14 is around $130, so the easy money in the event of a bull move is 13%.

Treasury long-term bonds are trading at the bottom of yesterday's range with a new psar bear signal. The pps flashed bear on Friday, and the macd on Monday.

The dollar is showing a psar bull signal as it trades against the yen (USD/JPY) and hit the day's high at near-term resistance before pulling back slightly. The price has risen 1% today, low to high.

---

The Option Trader Handbook: Strategies and Trade Adjustments (Wiley Trading)

I'm reading this book, and it is so excellent.

---

To the numbers, at about 10:05 a.m. Eastern . . .

Indicators:

• Blue chip stocks etf (SPY) is trading at $114.81, entered psar bull mode at close on Feb. 11 (at $108.13)
• Fear index or volatility (VIX) 17.70, bear (bullish for stocks), Feb. 17 (21.72)
• Treasury long bonds (TLT) $89.42, bear, March 10 ($tbd)
• Corporate junk bonds (JNK) $39.48, bull, Feb. 22 ($38.91) 
• Emerging markets (EEM) $41.37, bull, Feb. 3 ($39.40)
• Gold (GLD) $109.77, bear, March 9 ($109.72)
• Oil (USO) $39.59, bull, Feb. 16, ($37.20)

Forex currency pairs:

• Dollars per euro (EUR/USD) $1.3617, bull, March 3 ($1.3696)
• Yen per dollar (USD/JPY) ¥90.73, bull, March 10 (¥tbd)

Stock option holdings, March expiry:

• AKS, iron condor (p19/-p20/-c25/c26), $24.47, bull, March 3 ($22.81)
• GCI, covered call (-c15), $16.21, bull, Feb. 16 ($14.80) 
• T, bull put spread (p25/-p26), $25.65, bull, March 8 ($26.28)
• WFC, iron condor (p26/-p27/-c29/c30), $29.54, bull, Feb. 22 ($28.01) Today's rise puts it above the maximum profit at expiry range. Trading at resistance.

Zombies:

• MCO, long shares, $27.58, bull, March 5 ($28.11) 
• PALM, long shares, $5.74, bear, Feb. 18 ($9.62)
  

New to Private Trader? Check out the Reader's Guide.

New to private trading? Here's a look at How to Become a Private Trader.
Topics: S&P 500, SPDR, Spiders, Treasury bonds, high-yield corporate junk bonds, emerging markets, gold, precious metals, oil, petroleum, AK Steel Holding, Alpine Total Dynamic Dividend fund, Gannett newspapers media , Moodys bond rating, Annaly Capital Management real estate REIT mortgage-backed securities, Palm smartphone Pixi Pri,  Wells Fargo banking financial.