August

After being bruised by XOI & surviving some beating with XSP in July, there was great sigh of relief from XLF, C, FNM, & BAC.

Now, for August, the following new examples may seem to be worth for analysis & study:

Bear Call Spreads: IWM (73/74) ; SPY or XSP (130/131) ; XLF (23/24) ; SDS (77/78 or 77/79 or even higher combinations) ;

Bull Put Spreads: FNM (5/7) ; BAC (20/22.5) ; XLE (70/68) ; TWM (64/62)

The above are small risk spreads that may provide a decent rate of return with fixed/known risks & returns.

Based on the direction, a position on one side can be followed up with a condor in opposite direction in the future.

Of course, one needs to be aware that there is no real direction in the markets & it is driven by emotions. The technicians & experts can perform all the analysis, but all that analysis gets thrown out of the window in a market driven more by emotions.

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