All the news is relatively good from last night and this morning except the housing numbers. GOOG and IBM beat earnings expectations yesterday after the close and are set to gap up. SLB beat expectations this morning. The LIBOR continues to fall, which is loosening up Bank lending on the short end of the yield curve. The only major bad news was Housing Starts and Building Permits both missed expectations by quite a bit.
The pre-market futures are down more than I would expect (I was actually looking for the futures to be up pre market). I speculate that the volatility is due to the amount of options positions that are set to expire today. The historic dump in the markets probably has way more traders and market makers out of position on huge options positions. So there is likely going to be a lot of gyrating today as big traders get themselves out of bad option related liabilities. I would also speculate that there will be huge rollouts to November going on as well. It could be a wild ride in the options world for many traders today.
I will watch this for a call buying opportunity as a carryover from the Hammer patterns on many stocks and the overall market yesterday. It may not materialize, but I will keep an eye out. I want to see the market shore up this morning and reach for new intra-day highs in the middle of the day as a carry through on the bounce from yesterday. As always, we shall see.....
Subscribe to:
Post Comments (Atom)
So far so good for the SPX in the first half hour; intrigued to see what you might do intraday Dwight.
ReplyDeleteRe. What's up with Gold? per VC yesterday:
US$Comex Spot and Future pricing has been substantially down but how do you juxtapose that with all time highs in other currencies such as GBP EUR AUD CAD as well as CHF?
Also, how does one explain the glaring contrast against physical bullion and silver whereby dealers are simply out of stock worldwide? EVen in Zurich apparently, you can't buy a retail gold bar anywhere?! US mint has stopped producing the 1 Oz Buffalo and 1/2 Oz EAgles for instance. This disparity between huge demand for physical yet a depressed US$ comex price ( evertime New York markets open incidentally) is unprescedented.
Francis
Anyone in today? Really wanted to get in a call right at the beginning of the day. Volumes really low today, and I expect it to get lower since its Friday.
ReplyDeleteJoe
I got in SPY call this AM and made +6% and got out. My goal is small because I use to trade larger positions and got burnt.
ReplyDeleteJoe, I got in at 9:05 and got out at 9:48.
Who knows what this afternoon will bring!!
Happy Trading to all and have a great week-end!!
Margo
Hey gang! Francis,are you still in your SPY calls?
ReplyDeleteJoe,I picked up a SPY call, too, 15 min or so after the open. We'll see how it goes.
Mucha suerte, everyone!
Hi Laurie and everyone,
ReplyDeleteYes still in my Nov $90 SPY call; up 146% so far, too bad It's only 1 contract eh?!
Dwight confirmed my reasoning for holding for a few days with a tighter target area of 100.
However, I have to consider holding over the weekend which leaves me uneasy so may pull trigger today, especially as we've reached 97 as I type.
By the way, a great tip I learned from the Adv Optns Workshop I attended last week is to keep an eye on the S&P500 front month futures - currently December symbol: ESZ8 This one portends really well where the SPX and thus the SPY is headed and is what kept me in this am because without it, I would have pulled the trigger on opening and lost out on the rest of the day's up move.
Francis
Thanks for the tip Frances.
ReplyDeleteGreat job everyone!!
Margo
Got spooked out of my SPY Nov Call when it dropped down below $96... I didn't want to watch profit dwindle so I took my $300 and ran. Course now it bounces off $95 just to P me off!
ReplyDeleteAnyways, I can enjoy the weekend and look for the next opportunity; have to re-wire my brain to be more consistent with gains over time as opposed to looking for the big home run with every single trade.
All the best to everyone's trading.
Francis
Got into a call on spy at 95 in the morning with a tight stop then got stopped out. The worst is after taking the loss I didnt get back in and missed and $3.00 move. As they say you just have to keep trading the signals and not guess wich one will be the right one!
ReplyDeleteFrancis,
ReplyDeleteYou're not alone. I got out of my SPY, too. Trying to keep the green. I cleared 15.5%. I should have trusted my gut and gotten out when it hit above 97.50 which was my target. Then, I waited too long for a pullback and the fade was on, so I made my exit. You're right, Francis, the SPY did rebound, but hey, we made some money!
You made a great trade, Francis. Enjoy your weekend. You've earned it!
P.S. Thanks for the tip on the S&P futures.
Ahh, what a day. Was gonna get in DIA calls at the very beginning, decided not to and missed the intial move up. Then got in with the bounce of the short term channel at around 12et. BUT, while I was in class, stock moved to my target (would have sold) and then back down and I actually ended up losing $10!! I need an iPhone for when the new thinkorswim software comes out for it! It's ok though, still up on the week.
ReplyDeleteJoe
Thanks for the encouragement Laurie! I appreciate everyone's insights and uplifting thoughts.
ReplyDeleteIt was the ESZ8 SPX futures that tipped the hat first which made me sell; I must say it really worked today as an early indicator especially with how it ended off the highs.
As you say, better to have pocketed a profit than agonize over a potentially higher profit lost etc. No more woulda coulda shoulda thinking for me!
cheers everyone!
Francis
Missed VC last nite-will be out of town. I need a laptop so I don't miss VC. Reading all the comments we are all on the road to "getting there". We are zeroing in to perfection. Great week-end to all and pleasant thoughts to Dwight and family!!
ReplyDeleteMargo