This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Keep Looking for Buying Opportunities

NEW YORK (TheStreet) -- As of this writing, the December S&P futures are down 8.5 handles at 1443.

Driving the market lower Friday is some apparent disappointment in earnings from General Electric and McDonald's (MCD). Let's not forget Thursday's Google (GOOG) as well, which continues to weigh on tech.

Not much has come out of the European summit this week (surprise, surprise), and it is the 25th anniversary of the 1987 market crash, with no shortage of articles and media coverage regarding that event and why it is likely to happen again. Finally, it is option expiration day as well, which can make for some "quirky" price action.

It kind of appears that the powers that be are going to pin the December S&P futures at the 1440 level. We shall see.....

I do think it is important to keep things in context. Overall, the broad market simply continues to trade range-bound. For the past month or so now the S&P 500 futures have traded from 1420ish to 1460ish on the top side.

Although we have seen three failures at that 1460ish level, I suspect that the market simply needs to engage in some "back and fill" trade before taking another run at that level and breaking out to the upside. After all, it's difficult if not impossible to fight the Federal Reserve.

Overall, when one looks at the bigger picture there has been improvement in the economy, although the pace could certainly be a bit better.

Keeping those factors in mind, I feel that one has to continue to look for opportunities to be a buyer in this market until proven otherwise.

Currently, the market is testing the 20-day exponential moving average (EMA) on the daily charts. This also coincides with the 1441 level that so far has facilitated trade.

There is a lot of day to go, however, and whether buyers step up here again remains to be seen. This could be nothing more than another "fishing" expedition looking to take out stops.

Should this level be taken out decidedly today, however, that will set the stage for lower prices next week. One could certainly look to get long the market here with a tight leash.

I am of the opinion, however, that there may be some more downside to go and at this point would prefer to be a buyer in the 1400-1420 area. I like the prospects of being a put seller in that area or perhaps even a call buyer.

Because I will look to use options, I will also have a larger "margin for error" than a straightaway futures position, and thus not get "shook out" by fishing expeditions that are prevalent in a range-bound market like this.



Please note: Futures and options trading is inherently risky and isn't suitable for all investors. Past performance isn't indicative of future results. Stop-loss orders meant to limit losses may not be effective because market conditions may make it impossible to execute such orders.

Matt Zeman is a trader at Kingsview Financial. He began his trading career as a runner in the grain pits at the Chicago Board of Trade before becoming an arbitrage clerk. Eventually he started trading equity options and stocks. Matt now is a full-time futures broker. He has been a frequent guest on CNBC, Fox and Bloomberg, and provides his views on the stock, bond and futures markets for financial media including Dow Jones, the L.A. Times and The Associated Press. Matt is a member of the Chicago Board of Trade, and carries series 3, 7 and 66 licenses.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters