Archives

Today's move is being dictated by the overseas market last night and the new record lows against the Euro and the 12-year-lows against the Yen. As far as option trading goes and the market, we might be in for some of the most volatile days over the next six trading days. Options expiration is next Thursday. We have a Fed meeting next week and all of this combined to me means that you should be extremely careful. There are many times when doing nothing is the best trade of all. Preservation of capital. I'm not saying stay out of the market because there could be some good trading opportunities in these moves, but with the Fed and options expiration in just six days, you better be glued to your computer because the moves are going to be fast and furious in both directions. After options expiration next week, I would think volatility might start to come back down very slowly. I would still sell the market at the 1342 level in the SPX. It seems pretty far away at this point, but it's really just about a 10-minute move these days if something happens. Remember, preservation of capital. The goal is very comfortable allocations on your trading so you live to trade another day. This is no time to be a hero. The market doesn't care if it buries you or not in an up move or down move.