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John Carter Analysis: Position Update SPY, GMCR, NTES

In an unusual occurrence, the TRIN spike on Wednesday failed to a lead to a sustained rally the following day

In today's market preview, we're introducing an analysis tool called the TRIN. When the TRIN spikes like it did on Wednesday, there is a high probability of a rally the following day. Thursday, we did see a rally, but the market failed to hold its gains into the close as panic came in when oil collapsed yet again. With the dollar index strong, we're still looking for money to flow into US large caps, and playing that thesis by selling December put credit spreads on the SPY. As for individual names, GMCR is one we're stalking which is setting up for a weekly squeeze. NTES has a similar setup and we are looking for a breakout out of its short-term downtrend.

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