Monday, September 1, 2014

Weekly Market Reivew N225

This review came late because I was having a short weekend vacation across the causeway. 

N225 closed at 15,424.59 on Friday, 29-Aug-2014, lost 114.6 (0.74%) over the last 5 trading days. NKVI lost 1.75 (9.89%) ending the week at 15.94.

Looking at the bigger picture on daily chart, N225 dip back into the 15,000-15,500 tight range.  However, I will think that that range no longer hold.  The range has expanded to 15,000-15,700 range.  The Bollinger band has also expanded.

At the weekly chart, N225 is concurrence with the daily chart.  It stays in the expanded range of 15,000-15,700.

Looking at the monthly chart, the long pin bar failed to break the last month high which was just 220 points away last week.  The green bin bar also turn red with the month closed.  It is still a bullish bar rejecting 15,000.  But it is no bullish if it has turn green or break last month high.  We need the next bar to tell us more.

NKVI continue to move lower (please ignore the last bar as this is done on Monday morning) to 15.94.  With this low volatility, will need to explore buying instead of selling.

SPX broke 2000 this week and stay above it.  It closed at 1003.37, up 6.63 points on Friday.

Below is how the P&L chart looks like as at 29-Aug closed (please ignore the Index and Price as it is real time on 1-Sep):

Action plan for the week
I will close the Put Spread as it has reach my 70% credit target.  I sold the Put Spread for 15 points credit.  The Put Spread is now worth 4 points.  I will gain 11 points (11/15 = 73%) by closing (buying back) the spread.

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