Market Summary
The April 9th Couch Potato Market Summary mentioned "...Thus far, most of the major indexes have rejected attempts to break-through near-term resistance levels. Prices are at still near their 52-week highs, and usually require multiple attempts to penetrate firm resistance. The next few weeks might tell the story of what will be the price trend as more companies start reporting earnings, plus the upcoming Federal Reserve Board meeting... Investor sentiment appears to be changing as up until March, traders found a reason to push equity prices higher, regardless of the economic fundamentals. But recently, the traders appear to be looking to push equity shares back down every time prices near resistance. Friday's implosion of Google stock price is an example. After hours on Thursday, Google reported earning and revenue that basically met expectations. However since the company's expenses increased (primarily due to expenditures to retain and hire talented employees to compete with Facebook) traders used this as justification to dump Google stock.

Some pundits believe that there is a sector rotation going on as institutional investors bid up stock prices to do the short-squeeze, then sell at near-term resistance and move the funds to commodities. Other than the Japanese tsunami/Libyan-unrest inspired price correction a few weeks ago, the major indexes have basically traded range-bound since the beginning of February (see charts below). And of course, for our trading strategy we prefer this trend continue as long as possible. Very soon we may have a clear signal as to market sentiment as earnings season is in full force next week and the Fed meeting the week following.

SPY Position Update
SPY closed $132.04 on Friday - the April position ended approx. $2,000 in the black
SPY is priced at to its current 14-day EMA (see SPY chart down below)
SPY is trading ABOVE its 20-day Bollinger Band SMA (see SPY chart)
SPY is ABOVE its 50-day simple moving average (see SPY chart)
SPY is well ABOVE its 200-day simple moving average (see SPY chart)
Relative Strength Indicator (RSI) is neutral (See SPY chart)
Moving Average Convergence/Divergence (MACD) is neutral (See SPY chart)

The March 22nd Couch Potato published an April expiration month bear call spread
On April 12th the Couch Potato suggested closing out the entire call spread for an approx. $900 gain (see tables below)

The March 21st Couch Potato published an April expiration month bull put spread
On April 11th the Couch Potato suggested closing out the entire call spread for an approx. $1,200 gain (see tables below)

SPY Risk Analysis
We exited all the April options prior to Friday expiration.

IWM Position Update ---------------------------------------------------------------
IWM closed at $83.51 on Friday - the April position ended approx. $1,300 in the black
IWM is priced ABOVE its current 14-day EMA (see IWM chart down below)
IWM is trading ABOVE its 20-day Bollinger Band SMA (see IWM chart down below)
IWM is ABOVE its 50-day simple moving average (see IWM chart)
IWM is well ABOVE its 200-day simple moving average (see IWM chart)
Relative Strength Indicator (RSI) is neutral (See IWM chart)
Moving Average Convergence/Divergence (MACD) is neutral (See IWM chart)

The March 28th Couch Potato published an April expiration month IWM bear call spread
On April 11th the Couch Potato suggested closing out the entire call spread for an approx. $1,300 gain (see tables below)

IWM Risk Analysis
Similar to the SPY above, we closed the April option contracts prior to Friday expiration.

Final Comment
All the April option credit spreads generated gains and over the next few days we expect to start publishing the May trades.

Gregory Clay

Couch Potato Trader Disclaimer
All results reported in this section are hypothetical. While the numbers represented here may have been achieved or beaten by our readers, we make no representation that any individual investor achieved these exact results. The tracking for the plays listed in this section uses closing prices for the day the newsletter is published and it is not meant to imply that any reader actually received those prices (though many often do) or participated in these recommendations (even though many do). The portfolio represented here is hypothetical and for investment education purposes only. It is only an illustration of what type of gains a knowledgeable trader might receive utilizing these strategies. If you don't get close to these results, guess what. It isn't the fault of the strategies.