The market had several good reasons to go down today, disappointing results from AMZN, MSFT, lower consumer confidence readings. Instead, buyers came in, and the broad market closed modestly higher. If the stock market was ready to go down, -200 on the Dow would not have been surprising given the news.
There is a gap on the SPY chart around 105 back in October 2008 (one year chart). This looks to be a decent exit point for those investors wary of the rally and wanting to lighten up.
Long CELG, INTC, IWM*, MTB, XLE*
* IWM and XLE positions are near delta zero, meaning that moves in the underlying currently have near zero effect on the price of the options because they have moved so far away from the strike prices.
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