Along with Goldman Sachs, Morgan Stanley Posts Big Quarterly Loss More importantly, the broad market didn't suffer any serious damage. The stock market has often in its history rallied even when the prevailing economic situation looks dire. Wall Street often looks ahead six months or more in charting its path. The major indexes gapped down at the open. But the final tally showed losses that looked relatively mild compared to the wild swings that we've seen. Lighter volume also pointed to a lack of selling pressure from big-money investors. Indeed, that kind of healthy action has been par for the course lately. The market has shown an ability to shake off bad news in the past few weeks. It has also rallied on good news.
Hello again. The market continues to trade witth a semblance or orderliness - the Vix dropping sharply as buying volume is now coming into this market. That is NOT to say we can't get a shock or two from here on. I closed out a couple more profitable covered call trades and entered a couple more. Good premiums with good stocks at good levels with underlying support. Steel and Solar has been attractive. My LONG "swing" positions have not provided for me a starkly lower level for me to increase exposure by closing some SHORT NQ contracts - however I have at near-term "swing" lows. 917 will be key to break and close above. We shall see.
Continued indecision has resolved itself on the downside. I temporarily increased my SHORT exposure preceding this event and am positioned to perhaps profit more upon further <i>drain</i>. We shall see how much selling conviction there is. FYI - I was patient wrt waiting for Break Down levels to be breached (not that THAT means much these days). :eek:
Wow! What a drain. . .reversed LONG ES and kept LONG YM. Got in and out of a few SHORT NQ contracts, too. Scalping is TOO much for me, but in this environment it pays to not sit idle and let gains evaporate or to not be there when things jump around. Joe Baker's levels once again prove very fruitful. After quite a while with not much action (narrowing range) it did bust. I don't think it will bust as much as many day-traders are thinking to the downside. Maybe they need to pay attention to volume (more). pay$
I'm not sure if many noticed, but a nice array of sectors are posting gains today. Also nice jump in the ES so added 2 ES SHORT at 885 level - target 874 & 870 pay$
Interesting. The indexes broke down, but didn't nearly reach the UT (ultimate targets). 1ES was stopped (1 point) and the other I'm holding as a hedge for LONG 1YM. I can close it if I get a bit better pricing. My two covered call trades I opened today in SOLF and AKS doing well. The above was my higher margin account that had been in a bit of DD but my position for the day's action brought things back up. Still gonna "wait-and-see" if the bottom falls out or the bulls scream forward.
Yesterday's late-session drain was swift and sweet. I guess volume was light enough and day-traders were sick-and-tired of sitting around with this market and quickly brought it to Joe Baker's UT or ultimate target. I had a couple of NQ an ES contracts - just in case - that caught the SHORT for a nice 14 & 12 point move. Problem was things moved so fast back up I couldn't adjust my LONG exposure to capitalize on it. Seems the pricing wasn't comfortable or "bearish" enough to stay down for very long. Anyway, Detroit got what they wanted. . .now the ball is in their court as the market is in ours. Will be get a sever drawdown to what many are hoping to be their downside targets or will fund managers see enough uncertainty removed to add more shares and take the indexes up through support? "We shall see". Furthermore is is interesting to see that volatility - even with yesterday's sudden pull back - continues to lessen. ES targets are getting smaller and smaller.
If we continue to trade in a range, I will increase exposure in my covered call accounts. Today is expiration. Many stocks are being accumulated while others are getting it on the chin. This is a selective market. pay$ense
Interesting. Market up and with some volume. We have crossed the breakout level and have now pulled back to it. I am adding 1NQ (1235.75) LONG so let's see how this volatile expiration Friday bodes for the day-trade. :eek: