The mid-term elections generally turned out as predicted with the Democrats winning majority of the House, and the Republicans retaining control of the Senate.
Despite this appearing to lead to more political gridlock, the markets are approving of the results with a bullish gap up in the Index ETFs and many Sectors.
However, most are gapping to areas of even more resistance, not leaving great price voids above. Nevertheless, this will give us many more opportunities to sell put spreads under the prior created areas of support. Stay tuned.
NEW TRADE IDEA: 11/7: IWM – Consider shorting Nov (11/16) $152/142 bull put credit spread (9 DTE) for a limit of $1.08/share (closed at $1.23/share). Gap from bullish 3-day consolidation with loose resistance to left on daily, bullish reversal from Major Support weekly. Stop Loss: $152.28.
NEW TRADE IDEA: 11/7: ROST – Consider shorting Nov (11/16) $97.5/92.5 bull put credit spread (9 DTE) for a limit of $.35/share (closed at $.40/share). Bullish consolidation and Bottoming Tails after breakout from consolidation to all-time highs, relative strength to sector and market. Stop Loss: $97.64.
