Boomerang Trader

Friday Option Expiration expands the ranges some

Posted on19. Mar, 2010 by Mohan.

Good afternoon.   Johnny here for an update on whats been happening in the markets lately and on Boomerang.

The market has been trading for the last 13 days in a very tight average range of around 8-9 points.  This is very tight action and can make ANY kind of trading of the stock indexes very difficult. Thats just the way the markets are acting and we have to adapt.   One way to adapt which is obvious is to look to take tighter scalps of 1.5-2.00 points .  If the ranges shrink then the potential scalp size will normally have to shrink with it.  Nothing anyone can do about that.

Today on the Option Expiration the ranges have opened up some which is a good sign.  The Daily Directional Forecasts (mohansmarketforce.com) stands aside on Option Expirations but their service did recommend that 1153.50 would be a 2nd level support .  Prices have pulled back off of another attempt at 1165 (which Mohan also suggested it would) and ran 1152.00 on the lows with prices now hovering around 1153.50.

There was a really nice short runner from the 1162 area on Boomerang today.  But it seems many would have been hard pressed to hold for a runner with the way the ranges have been behaving lately.

Here is the chart for Friday.  The key right now is to just be patient with these tight range markets. They won’t last forever. This month of March has seen 14 strait days up in a row with today finally selling off some like a normal market.  Ideally this will open up the ranges some more going into next week.

Have a nice weekend.  Johnny

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