{"id":12847,"date":"2020-06-17T09:21:04","date_gmt":"2020-06-17T14:21:04","guid":{"rendered":"https:\/\/www.eoption.com\/?p=12847"},"modified":"2020-06-17T09:21:06","modified_gmt":"2020-06-17T14:21:06","slug":"daily-commentary-june-17-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/daily-commentary-june-17-2020\/","title":{"rendered":"Daily Commentary: June 17, 2020"},"content":{"rendered":"
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Asset Managers Have A \u201cRecovery or Bust\u201d Mentality – The Market Will Grind Higher<\/h4>\n<\/div>\n
Posted by Pete Stolcers on June 17
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After testing the 200-day moving average three times in the previous few days, the market gapped higher Tuesday. News that the Fed was buying corporate bonds sparked buying and a $1 trillion infrastructure bill could be signed by Congress shortly. The Coronavirus is spreading after the nation has started to reopen, but President Trump vowed that he will not shut the country down again. This morning the S&P 500 is poised to challenge the high from yesterday. I believe that quadruple witching will fuel a rally to SPY $322.50 this week.<\/p>\n

All that matters is that the Fed is printing money as fast as it can and that it will deploy that cash in many different ways to get the economy humming. Asset Managers are generating negative real returns when they buy bonds so they would rather lean on the safety net provided by the Fed and buy stocks. This is the only way they can generate a reasonable return and they will they have a \u201crecovery or bust\u201d mentality.<\/p>\n

Stock valuations are a little \u201crich\u201d and I feel that we could grind our way back to the all-time high by the end of the year if the recovery is on track. This move will be gradual and there will be plenty of speed bumps.<\/p>\n

The Coronavirus is spreading and people need to be cautious. Social distancing and facemasks are needed. This will impede the recovery and consumer spending will gradually improve. I don\u2019t believe we will see a massive market rally based on pent-up demand.<\/p>\n

We are heading into a \u201cnews vacuum\u201d and that favors the current upward momentum. Earnings season is a few weeks away.<\/p>\n

Swing traders need to sell out of the money bullish put spreads on tech stocks. Yesterday I told you not to chase and that there would be an opportunity for you to get your trades off. After the massive gap higher yesterday, the market retraced all the way and there were opportunities to sell bullish put spreads. Tonight I will record my Weekly Swing Trading Video and I will highlight for new bullish put spreads. Now that bullish speculators have been flushed out, prices should stabilize. I would not get overly aggressive. Earnings season typically attracts buyers, but the news could be a cold splash of water when the devastation from the shutdown is revealed. Focus on tech stocks that were relatively unaffected by the virus or that prospered because of it.<\/p>\n

Day traders need to wait for the bid to be checked this morning. Once support has been confirmed, favor the upside. Look for stocks with relative strength and make your money early. If the market makes a new high after two hours of trading and if it is above Tuesday\u2019s high, get a little more aggressive with your longs.<\/p>\n

Look for bullish price action the rest of the week. Quadruple witching should have a positive impact. We typically see volatility ahead of this event and we might\u2019ve already witnessed it the first two days of the week.<\/p>\n

Support is at SPY $308 and resistance is at $315.60.<\/p>\n<\/div>\n

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Content is provided by OneOption, LLC<\/a>, which has no affiliation with Regal Securities, Inc. (“Regal”) This commentary is provided for information purposes only, and is not a recommendation, offer or solicitation by Regal to buy or sell securities or to adopt any investment strategy. Regal has not participated in the creation of the OneOption content and does not directly or indirectly endorse the content. Any reliance on this material is at the sole discretion of the reader.<\/em><\/p>\n<\/div>\n

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Asset Managers Have A \u201cRecovery or Bust\u201d Mentality – The Market Will Grind Higher Posted by Pete Stolcers on June 17 www.1option.com   After testing the 200-day moving average three times in the previous few days, the market gapped higher Tuesday. News that the Fed was buying corporate bonds sparked buying and a $1 trillion infrastructure bill could be signed … Read More<\/a><\/p>\n","protected":false},"author":17,"featured_media":1318,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-12847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1option-commentary"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/posts\/12847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/comments?post=12847"}],"version-history":[{"count":0,"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/posts\/12847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/media\/1318"}],"wp:attachment":[{"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/media?parent=12847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/categories?post=12847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.eoption.com\/wp-json\/wp\/v2\/tags?post=12847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}