Market Reacts on Track. Trade and Research Updates.
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Good day to you all... Hope everyone had a fantastic weekend! Appears my call on a market wide rally was spot on Friday, however, we're not out of the woods yet. We need some follow through to launch any sort of sustainable rally. It appears the strength will continue to be tech if we can get some momentum here. I'm not one to dwell on economics so I'll just reiterate that it would surprise me tremendously if the Europeans let their current monetary policies negatively affect the markets over there. I say this only because the media pundits continue to make it the reasons the market trades every day, which just isn't true. I'm a firm believer that much of the noise surrounding stuff like this is already baked into the markets. There are just too many genius economists and big money players out there that know the outcome well in advance of your average CNBC talking head. For now, my two cents is to buy the dips and sell the rips for some quick trading profits.
If you're curious what I play, when I'm interested in trading the market indexes as a whole, I prefer in the money one month or two month out calls or puts in the QQQ's, SPY's or DIA's depending on what I think the market is going to do at the time. And, I don't hold them long. Remember, options erode with time, so never hang on unless you are well in the money and your profits are running in the right direction.