Sunday, January 24, 2010
Dark Moon Rising?
This week was a bad week for the markets as we saw the largest weekly decline for stocks since March 2009. Friday saw the Dow drop 216.90 points closing at 10,172.98. The SPX declined 24.72 points to 1,091.76. This decline in the SPX was on top of a further fourty point decline in the other three sessions!! We are in the green and looking ok for now.
However the long term health of the play depends on what happens next week.
Lots of commentators have been threatening the markets need to pull back and maybe
this is it.....or maybe not. No one really knows. All I know is that traders can be very herd like and once one "person" gets spooked loads can follow.
There is much going on this week which might shift the market one way or another.
We have a Fed rate meeting, President Barack Obama's state of the union address and the possibility that Fed Chairman Ben Bernanke won't get his confirmation vote!!
In addition we have 12 Dow companies and about 150 SPX companies reporting earnings!
It's gonna be a busy week and we don't want to get caught up in this rollercoaster if the declines keep coming.
Therefore if we see serious declines over the next few days we will look to adjust the play and buy us more downside. Any adjustment will of course impact on profits but will give us more piece of mind. In any event we may close the call side down as we can probably buy it back for 25c and roll it down to the 1200 mark and get some extra premium.
Lets see what happens over the next few days.
Until next time.
However the long term health of the play depends on what happens next week.
Lots of commentators have been threatening the markets need to pull back and maybe
this is it.....or maybe not. No one really knows. All I know is that traders can be very herd like and once one "person" gets spooked loads can follow.
There is much going on this week which might shift the market one way or another.
We have a Fed rate meeting, President Barack Obama's state of the union address and the possibility that Fed Chairman Ben Bernanke won't get his confirmation vote!!
In addition we have 12 Dow companies and about 150 SPX companies reporting earnings!
It's gonna be a busy week and we don't want to get caught up in this rollercoaster if the declines keep coming.
Therefore if we see serious declines over the next few days we will look to adjust the play and buy us more downside. Any adjustment will of course impact on profits but will give us more piece of mind. In any event we may close the call side down as we can probably buy it back for 25c and roll it down to the 1200 mark and get some extra premium.
Lets see what happens over the next few days.
Until next time.
# posted by Paul @ 12:48 PM 
