Saturday, May 31, 2014

Weekly Market Reivew N225

N225 closed at 14,632.38 on Friday, 30-May-2014, gained 170.21 (1.18%) over the last 5 days.  NKVI moved down 1.22 (5.82%) ending the week at 19.75.

After N225 move up to close above 14,600 on Monday.  The following days in the week were in a very tight range of 150 points (14,600 - 14,750).

N225 has broken out of the 600 points range I mentioned in previous weeks review.  It has stayed above it for the 5 trading days.

We didn't get the lower low to establish a short term down trend.  What we get is a higher high which give us no trend.  Will it continue its climb to test previous high at 15164.39?  With 40 days to expiration for July contract and 75 days to expiration for August contract, is 15,500 Strike too near?

NKVI at 19.75 is still at the lowest for the past 17 months, except on 8 & 9 Jan 2013 (19.06 & 19.42 respectively).  At this low volatility, I find it hard sell contract with good premium.  However, the range bouncing that N225 has been moving for past weeks/months also help to close the contracts, despite lower premium, with profit.  I rarely hold contract to expiration nowadays.  Will have a separate post to explain that and update my trading plan.

SPX closed at 1923.57, record high, up 3.54 points on Friday.  This would likely to keep N225 above 14,600, if not provide some push on Monday.

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