Monday Jan 22, 2018 may be an interesting day in the markets.
Recap, $SPY closes trading $280.41 Friday Jan 19, 2018 at all time highs with threat of the shutdown looming for midnight that night.
The bill needed to keep the government open does not pass and the government shuts down. There is potential for a delay or other option, meeting for that will take place on Sat Jan 20, 2018 at 10AM and who knows what else could happen by Monday.
The $SPY is in extremely extraordinary overbought conditions but so far no big volume spike to indicate some tradeable reversal action. Monday, if the $SPY gaps up big, it should cause a panic buying spree as shorts cover their positions opened due to the "government shutdown" news.
This should float the market up quickly after the open and on volume. I'll be looking toward $285 for topping action with the Dow up ~500 points, and when it appears nail it with some puts. Expecting a sharp pullback from there for 1-3 days where I will dump the puts and buy calls to ride it back up to new highs.
Gap up with strong move up on heavy volume will be my signal. Planned the trade for Tuesday Jan 16, but the volume didn't present itself, just the gap up. Still the put I was looking at $275 Jan 19 went up about 500% that day.
Looking for a big move, 1500-4000% gain. The setup is too pretty to ignore.
Then again, they could ruin my trade idea with a gap down.
Legal Disclaimer:
This is my opinion only.
This is for entertainment purposes only.
This is NOT financial advice nor a recommendation to buy or sell anything.
