With the final days of September down, October started out mixed with an "up a day, down a day" price action. The selloff really didn't start until last week, but by the end of the week the S&P began to firm. Who could have guessed that the S&P was going to reverse ship and rally over 5% so quickly?
Today the October options expire at 3:15 CT. Yesterday I thought the S&P would pull back, but the December E-mini S&P 500 futures (ESZ13) gapped three handles lower, made its low on the open, and rallied 20 handles. It's 6:00 am and the (ESZ13) is up 2.75 handles at 1730.75. Our view? The S&P has closed higher five out of the lastsix6 sessions for a total of 91.3 handles. While the Ned Davis stats show today as being an up day, we lean to selling the early rally and buying weakness.
As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar). We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow.
OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits
MrTopStep can be followed on Twitter at twitter.com/MrTopStep
For LIVE futures chat, more information on the 10-handle rule and futures educational content CLICK HERE FOR A SEVEN-DAY FREE TRIAL.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV