As the seasons move from summer in to fall, the markets are also seeing a transition. As a trader, you want to be able to recognise the signals to ensure you are adjusting your trades according to how the market is moving. The S&P is no different. This past summer was particularly interesting as there was more volatility on some days with the volatility drying up the following week. We had days with lots of trade entries, followed by days without trades at all. The market which saw highs of 2900 in January with a hard sell off, and moved back to the 2900 this summer. Now that the markets are coming off the highs with a controlled move, it looks like the fall is setting up for some great trades ahead.
One stock that has been headlining is AMZN with its projections to be a 3 trillion dollar company. While everyone is discussing this stock Im not trading it. Typically, this is a stock that look to trade every week, it is usually a great candidate for a credit spread on a weekly basis. The stock trends nicely which allows for strong levels of support or resistance, providing ideal levels to trade based on credit. But, for now, as the stock is printed on most media outlets, I will be waiting to trade it.