© Copyright 2025 eOption, a division of Regal Securities, Inc., Member
FINRA/
SIPC |
Important Disclosures
950 Milwaukee Ave., Ste. 102 | Glenview, IL 60025
The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of eOption which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at www.finra.org/brokercheck.
Options Disclosure: Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at support@eoption.com or via mail to eOption, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
eOption Commissions: Broker-assisted orders are an additional $15. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. A commission rate of $2.00 for equities and $3.99 + $.10/contract for options, per execution, applies to orders entered and filled by eOption's Auto Trade Desk and does not apply to customers who enter their trades directly into the eOption platform and are not utilizing the Auto Trade desk.
Broker Comparison: The competitor rates from published websites were verified on 05/25/2023 and are believed to be accurate, but not guaranteed. Commissions are subject to change without notice. At some firms, commissions may not reflect broker-assisted fees, orders over 1,000 shares, penny stock trades, OTCBB, pink sheet stocks or foreign stock orders. Firms may offer reduced commissions if additional criteria are met.
Blog & Commentary: eOption is neither affiliated with, sponsored by, nor endorses commentary and the opinions expressed are solely their own. Content is provided for educational and informational purposes only and eOption cannot attest to its accuracy or completeness. No information provided has been endorsed by eOption.com and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and eOption makes no investment recommendations and does not provide financial, tax or legal advice.
ISM Services After the Open
www.oneoption.com
The market is trying to bounce off of support.
PRE-OPEN MARKET COMMENTS TUESDAY – The market was able to rally above the 50-day MA yesterday on light volume. In my opinion, that was not a strong show of force by buyers. The M5 candles on the way up were tiny and overlapping. If buyers were truly excited after the news from Foxconn, they would have demonstrated it. It’s not like they were chasing an all-time high. This was a market dip that found support, key resistance was breached and they would have embraced the news. Late in the day, much of the move was erased. This would not have happened if buyers were excited.
The SPY did close above the 50-day MA and that’s important. After the open today, ISM Services will be released. As a survey it is very current and the service sector accounts for 80% of our economic activity. Tomorrow ADP will release private sector payrolls. Thursday the market will be closed to honor President Carter and Friday the Jobs Report will be released. I can’t get a good read on the Jobs Report because of the holiday. It is filled with seasonal adjustments and people don’t usually file unemployment claims during the holiday so those numbers will be artificially low.
I added to a small short position yesterday and I am underwater by about 30 S&P 500 points. I am not remotely concerned. Heading into year end, the move higher was filled with constant dips and the upward momentum was waning. The price action off of this dip has been very sluggish. A few months ago, the dip would have been brief (a few days) and shallow (above the 50-day) and we would have jumped off of support. We are not seeing that now and that suggests selling pressure.
Bull markets die hard and my observations don’t mean that the market can’t move higher. I am keeping it light. I want to see a lower high and I want to see a negative reaction to the Jobs Report Friday. If the market takes out AVWAPQ, it will test the 100-day MA. If I get this price action, I will add to the short. If the market rallied back above the open from December 18th, I will take my lumps.
From a day trading standpoint there are good longs and shorts now that the market has been trapped in a range the last month. The volume remains light so error on the side of not trading. The news is going to crank up the next few weeks so you won’t have to wait long for this to be resolved one way or the other.
I would not take any positions before ISM Services at 10:00 AM ET.
Support is at the 50-day MA and resistance is at the high from Monday.
Content is provided by OneOption, LLC, which has no affiliation with Regal Securities, Inc. (“Regal”) This commentary is provided for information purposes only, and is not a recommendation, offer or solicitation by Regal to buy or sell securities or to adopt any investment strategy. Regal has not participated in the creation of the OneOption content and does not directly or indirectly endorse the content. Any reliance on this material is at the sole discretion of the reader.