3/11 Morningline

Blue chip stocks (SPY) and Treasury long-term bonds (TLT) opened in the middle of Wednesday's ranges, as though hung over from that day's excesses.

SPY on Wednesday slightly overshot its high of Jan. 14 but failed to establish that price, $115.14, as a new support level.

Will SPY again attempt to pierce that major resistance and resume the bull market that began in March 2009? Will SPY, despondent, sink back into beardom? Or will it stay put, embracing boredom as the price goes nowhere?

The morning's theme song is from the 1934 Cole Porter: "Anything Goes".

---

Abbreviations:
psar - Parabolic Stop and Reverse, adx - Average Directional Index, pps - Person's Proprietary Signal, ma20 - 20-day moving average, macd - Moving Average Convergence-Divergence, mfi - Money Flow Index, sto - Fast Stochastic

---

The fear index (VIX), which measures the volatility of the S&P 500, is showing a pps bull signal this morning, with an adx of 12 and a rising, although still bearish, macd. The psar remains in bull mode, but with a trailing stop 4% above the price. 

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

Indicators:

• Blue chip stocks etf (SPY) is trading at $114.48, in psar bull mode with an adx of 20, entered at close on Feb. 11 (at $108.13)
• Fear index or volatility (VIX) 19.22, bear/12 (bullish for stocks), Feb. 17 (21.72)
• Treasury long bonds (TLT) $89.57, bear/12, March 10 ($89.59)
• Corporate junk bonds (JNK) $39.44, bull/32, Feb. 22 ($38.91) 
• Emerging markets (EEM) $41.22, bull/20, Feb. 3 ($39.40)
• Gold (GLD) $108.54, bear/11, March 9 ($109.72)
• Oil (USO) $39.91, bull/20, Feb. 16, ($37.20)

---

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

Great section on what to do when good trades go bad.

---

Forex currency pairs:

• Dollars per euro (EUR/USD) $1.3661, bull/26, March 3 ($1.3696)
• Yen per dollar (USD/JPY) ¥90.42, bull/14, March 10 (¥tbd)

Stock option holdings, March expiry:

• AKS, iron condor (p19/-p20/-c25/c26), $23.66, bull/16, March 3 ($22.81) Showing pps bear signal.
• GCI, covered call (-c15), $16.00, bull/17, Feb. 16 ($14.80) 
• T, bull put spread (p25/-p26), $25.45, bull/22, March 8 ($26.28)
• WFC, iron condor (p26/-p27/-c29/c30), $29.46, bull/20, Feb. 22 ($28.01)

Zombies:

• MCO, long shares, $27.60, bull/13, March 5 ($28.11) 
• PALM, long shares, $5.59, bear/41, 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.