My Plan For The Week
$SPY is showing signs of entering a stage 4 decline as we continue to reject the 20SMA on the weekly which is a very weak macro structure that could lead to a test of the $330s in the future.
While we are still in a massive downtrend, I think we will have a multi week bounce after CPI comes out on Wednesday back to the $420-$430 range before more downside.
I currently hold a 395 cash secured put for $SPY expiring tomorrow that will expire worthless collecting me $405 in premium in a week.
Given the look of the close on $SPY/$QQQ, I will look to sell another out of the money cash secured put to collect more premium if we do get that bounce.
Ultimately, I am in 98% cash right now with no intentions of allocating to positions until they base no matter the fundamental analysis view.
For example, $MELI will trade under $700 to fill its gap no matter how strong the FA on the company truly is.
Patience. Better prices will come with time.
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