Recap: The word of the day is Whipsaw! First we open upfrom yesterday. Then we quickly fall off a serious cliff on Russia/Syria/USchatter. Then within minutes we recover for most of the day only to lose steamgoing into the close. The only part that didn’t surprise me today was the fadeinto the close. I had said that traders will want to book profits before theweekend especially that we’d had three up days in a row and were working on afourth one. Although we closed flattish, this was definitely a win for the bears!An important note is that the market seemed to have ignored the interestrates during market hours. I suspect that this won’t last long.
NextOpen: With alight economic early part of the week, I anticipate that Monday’s open will beheavily influenced by the Asian and European overnight sessions. It would beinteresting to see how they will interpret our Friday chain of events. As for the Syriaissue, I want to assume that we will have the proverbial blue elephant in theroom until Obama gets his way. NOTHING ISPRICED IN! If Fed tapers tomorrow or if Obama strikes Syria we willfall precipitously. Conversely, if Bernanke flat out says no taper on his watchor if Obama said no strikes then we rip to the moon… NOTHING IS PRICED IN!
Trades: Nice day for the folio.
See you all soon.
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