BREAKDOWN?!?!?!

Well Traders, today may have been a significant day. It is the first time since early August that the $NDX has fallen below the 30 Day Moving Average. That is a Bull run of over 4 months! Whew!

Here is the chart:

You'll notice that the $NDX touched the Bollinger Band support area (just above my gray "support area" at $1,761), then ended up higher than it opened, but still down almost $6 points for the day. So we are kind of at a crossroads in my humble opinion. The break below the 30 Day Moving Average is significant because it hasn't been here in a long time. It is now becoming more and more range-bound, bouncing between $1,761 and $1,824. If you wanted to play a tight Iron Condor (which I would never really recommend) you may think about it for January. Basically, you have to have solid conviction (and brass cajones) to think that those support and resistance levels would hold for a little over three weeks. If you played a tight $1850/$1875 Bear Call, you could make about $4.10, and a $1750/$1725 Bull Put may get you $6.40 for a total credit of $10.50. Your risk would only be $25.00 - 10.50 or $14.50. That is some serious bling if you have the guts to try it. Too risky for my blood.

I have not entered a January Iron Condor because my order wasn't filled today. I am only willing to make these plays for a certain ROI, and if I can't get that, Homey don't play. I'll try again tomorrow, but it looks like I may have to go back to my 6 week plays again in order to get the credit I want to make the play worthwhile.

Happy Trading!