The below assessment is provided under the disclaimer at http://TSP.Live/trading-content-disclaimer/. Always consult with a licensed financial professional before trading.
Assessment: Action is as dull as it can get. Stocks move maybe 1% in one direction one day, and then back 1% the next day. There’s just a lot of churn in the markets right now. It’s very simple because everyone is looking at EXACTLY the same thing…
We are at short term highs and overbought, so no material buying is taking place. The bears have been dead and buried since January when they failed to break SPY $380. So, who wants to ride with the bears right now given we don’t even know they exist? Who wants to buy when RSI in SPY is 68? It doesn’t leave a good risk to reward ratio to the upside. Sure the market could go up, but will it go up enough and fast enough to make options premiums payoff…or with the move occur just fast enough for time decay to be hitting…leaving you with a market moving up while you lose money in CALLS? Oh and if you take PUTS…good luck!
We will get a market to trade, and trade well, but it might take at least another day before it arrives (because today is not it based on the initial action).
Good luck in your trades!