Technical Tuesday – 2,200 or Bust!

Well, we're making SOME progress.  

As you can see from JackDamn's SPY Chart, since gapping up in the 2nd week of August we've stayed tightly in this range between 2,170 and 2,190 on the S&P (and divide by 10 for SPY) which is up around 10% since the Brexit Panic, brief though that was at the time.  

Before then we were hovering around 2,010 so 2,020 is only up 5% and really, it should'nt be THAT hard to manage, should it.  I hear again and again from the MSM and my fellow pundits how great everything is but, to me, "great" should have a much easier time of gaining 5% in a quarter – this is "good" at best…  

Of course, it's not quite so "good" when we consider that SPY, like the S&P, is priced in Dollars and those Dollars have become 2.5% weaker in the past 3 weeks and more than 5% weaker than they were at the start of the year, when the S&P was at 2,050, which is 6% lower than it is now.  So, in reality (I know, where is that), in constant Dollar terms, the market is only 1% higher since the start of the year since those Dollars you cash in your shares for have 5% less buying power than they did back then. 

If only we had all bought gold in January – or Natrual Gas (which was our Trade of the Year), that trade is up 900%!  Speaking of trades, we were dead wrong on Best Buy (BBY) yesterday and they had a fantastic quarter and popped 15% to $38 pre-market this morning.  The way to adjust a short call is simply to roll it to a longer-term, higher strike and generally we roll the loss, not the whole amount.  I'll touch base in Member Chat in case anyone played them short.

Inside of BBY's numbers were poor game revenues and that might bode ill for GameStop (GME), whose earning are Thursday, so another potential shorting candidate at $31.50 and the Jan $35 calls can be sold for $1.40 while the $37 ($7.25)/32 ($3.75) bear
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