Ah how the Fed loves to take the wind out of everyones' sails. 11:35 market sees bottom in housing sector and starts buying. 11:36 shorts get freaked and it is a covering frenzy. 11:56 suddenly find out about a non-voting Fed president that thinks rates should go up again in SEP. 12:45 market completely loses all gains caused by the short covering. Do you think they just sit around and wait for the opportune moment?
Sure. But, 5% is a lot to leave on the table. I routinely close positions when I am satisfied with the profit AND the risk feels too large for the remaining potential profit. I dont think that applies in this case, unless you are wildly bullish. Mark
I closed my SEP/OCT 1255/1265 and SEP/OCT 1240/1250 ES diagonals today for +60% and +24%, respectively. This leaves me with OCT 1335/1350 bear call spreads and SEP 1250/1250 bull put spreads. I'll be looking at closing the put spread for around .25 on any strength tomorrow or Monday. My feeling is that we'll trade between 1290 and 1310 on the sep contract for a couple of days.
You heard the guy on CNBC this morning too Yeah I see us staying between the recent highs of 1315 and MA support at 1295 and 1280 or so. I agree there is negativity coming into the market, I just feel it is more for OCT and end of September then this coming week.
http://money.excite.com/jsp/nw/nwdt_ge.jsp?news_id=pzn-104844&feed=pzn&date=2006 0907 Riskarb told me that they want to satisfy SPX spread's traders, maybe the spread will narrow then, IMO
On the contrary, I'm 100% sure there are sheep blindly following your trades LOL. There's not much you can do about it though. Good luck next week. MoMoney.
I was more worried about the view count but after some investigation, it appears that it should support up to about 4 billion. Still, if anyone is going to test that limit first, it will be Phil's thread