Market Direction Alert – Weak Closing Could Spell More Selling As 100 Day MA Breaks

Just a quick note to indicate that the stock markets are showing continued pressure as both the S&P 500 and the Dow flirt with breaking their 100 day moving averages. These are significant moving averages. For members who have not read the article on how I handle a correction you might want to review that article.

Without a bounce today after such a heavy down day yesterday I took the opportunity today to buy back my Intel Stock $21 naked puts from yesterday’s sell and I hope to sell them again if Intel stock keeps under pressure.I also rolled down my MCD Stock naked puts as per that strategy as I think we will see further selling.

Meanwhile for put sellers I think holding cash back is a good strategy. Even though volatility as meaasured by the VIX is down slightly today, that can change in a heartbeat. The market is poised to drop through the 100 day moving average which will bring more selling into the market.