We have quite a few open positions at the moment. We are holding them all, including the housing stocks already picking up steam.
After working tonight, we’ve just spotted an opportunity that could pay off quite well in no time at all. It’s the SPDR Dow Jones ETF (DIA).
After plunging from 17,100 to 16,400, the Dow may have just found solid support at its 200-day moving average. MACD and RSI are also on the floor. While risks still exist on the Street, there’s a good chance for – at least – a respectable bounce off this moving average. The Dow held the 200-day in October 2013 before running from 14,700 to 16,340, and again in February 2014 before running from 15,500 to 17,000.
If the same holds true now, we could see another big push higher.
On Monday morning, buy to open a small position in the DIA October 2014 167 calls up to $3.50. Do not risk the house. The market is still volatile. But this pivot point at the 200-day moving average makes things interesting.