Golden cross

[Rich Conklin]

Hi, I noticed we had a golden cross on the spy today. I’m not sure if the 10 MA IS 1.5% above the 200 moving average.. I also noticed that there were no SPY options for the month of October and November. I was wondering, is it better to go out a month to December or go back a month to September? The market just closed here on East Coast of the US. I have to make a decision I think by tomorrow morning opening bell. if anyone could give me a little advice on this, I would greatly appreciate it..

Thank you
Rich Conklin

[Brad S.]

I have not read the brand new DITM book (but will soon). I believe the former one recommended entering at open the market day AFTER the golden cross with white space at least .3% between SMA10 and SMA200. When it is close like this, it can be challenging if indicators might be configured inconsistently – for example inadvertently using SMA10 with EMA200. Another example is if you are using day’s close with one indicator and inadvertently have the other set to Low-of-Day. Just sharing that as that these have bit me a few times. I use multiple brokers and rely more on the one which has an excellent “table view” which shows all the exact data values for the charts. It’s tough to know the exact close on just hovering over the chart. I show that SMA10 closed at 669.52 and SMA200 at 665.17, so that’s 100.65% higher for SMA10. I am tentatively planning to purchase 1 SPY contract based on this information tomorrow morning, however, I have not found an option with Extrinsic Value < 1% for the 50% strike – the closest is December26 350 which has EV just slightly over at about 1.13% – probably good enough for me. The slight variations in data values across brokers is frustrating but inevitable due to after hours market pricing adjustments, rounding, and probably occasional calculation errors.

Don’t necessarily base your decision on what I just shared, just hoping to be of a little assistance. I nor my brokers’ sites are the gold standards and I’ve learned to try and get close on the numbers when I have to calculate, but not to worry about precision-to-the-extreme. Have a great day.

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