Saturday, October 28, 2006
A Big Down Move
Stocks ended the week on a down note after a disappointing GDP report. The Dow declined 73.40 points to close at 12,090.26. The SPX lost 11.74 points to 1,377.34 after it gained about 8 points on Thursday.
The decline was great for our position and puts the play firmly back in the green with three weeks to go to expiration Friday. We are nearly delta neutral again on this play.
Economic news was the major story Friday with the GDP report giving traders a chance to take profits. Growth for the third quarter was expected at 2% but came in below expectations at 1.6%. This quater has seen the slowest growth for the last three years. Though the bulls tried to push stocks higher on several occasions, ultimately the bears held on for a very rare win of late and sent the markets into a decline which we have not really seen for the past 6 weeks.
Next week we see more full earnings reports from major companies and the key employment economic report is released on Friday. Expect some more movement next week.
As long as it is not severely up or down in one particular direction, we don't really care.
Until next time.
The decline was great for our position and puts the play firmly back in the green with three weeks to go to expiration Friday. We are nearly delta neutral again on this play.
Economic news was the major story Friday with the GDP report giving traders a chance to take profits. Growth for the third quarter was expected at 2% but came in below expectations at 1.6%. This quater has seen the slowest growth for the last three years. Though the bulls tried to push stocks higher on several occasions, ultimately the bears held on for a very rare win of late and sent the markets into a decline which we have not really seen for the past 6 weeks.
Next week we see more full earnings reports from major companies and the key employment economic report is released on Friday. Expect some more movement next week.
As long as it is not severely up or down in one particular direction, we don't really care.
Until next time.
# posted by Paul @ 1:01 PM 
