Pre-Open: The morning after the taper is expected: tepid. Most overnight sessions followed the US into a rip roaring rally. China was down almost 1% but that was due to internal issues regarding credit crunch.
Today: Yesterday's candle was the largest over a year and so it deserves respect. I will watch for follow through which I don't expect. Yesterday's move was caused by a relief rally caused by the elimination of a potentially negative catalyst. For markets to continue the rip, we need a positive catalyst like an improving economy. So, now we need good economic news so that the economy rate of growth can catch up with and justify the huge 2013 market rally. This morning's new claims data was again inching to 400k. This is not the kind of news that this economy needs to grow faster. We need more jobs and we are not getting them. I have to leave room for reporting errors on this number but that's two weeks of high claims with no mention of data inconsistencies from the government. This is not to say that I see doom; I don't think that we will leap up from here.
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