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The S&P ended the week on a soft note after Bernanke's comments failed to give the bulls much to rally from. The initial pop was there but buying quickly turned into a light volume selloff and the S&P and Apple (AAPL) left us at very interesting levels of support.
The S&P has pulled back to the daily mean and is also holding symmetry support. This has been enough for bulls to hang on from the November 16th low and provided these prices hold the trend remains in place. When this trend does break the first retracement should provide a great shorting opportunity. Until then we have to play within these prices and I'll be looking for a grind higher into Friday. We may see a little weakness Monday and Tuesday morning, but headline risk aside the market should hold up this week.
Symmetry is one of the most powerful things you can follow in a trend and like the S&P, United States Natural Gas Fund (UNG) is also sitting right on top of daily support. We spoke about picking up the January 18 calls last week, but weren't quite able to get down into our limit prices. Provided UNG opens anywhere near flat on Monday we still like this position against the support seen in today's chart.
While we're bullish on this from a long term perspective, we're just looking for a pop from these extended levels back into the mean at $20.07. This is where we'll look to take profits and see how the ETF acts at these prices.
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