Market Close
Option expiration day ended with shorts covering before the G20 Economic conference this weekend. aside from the end of day shorts covering it was an uneventful day with a negative tilt to it. Once the FOMC gave hints that it would not cut Fed Funds Rates anytime soon the XLF (financial sector) started heading down again. Hit hard today was banks where large drops were seen all day.
Options expiration day is never a good day to take on a new swing trade because many of the movements are temporary and are exaggerated.
The action in the bonds is still VERY concerning to us, the amount of money that is gathering in bonds is becoming staggering. A lot of other smart traders and investors out there are seeking shelter for the coming weeks and months. The data we got this morning on foreign investments reveals that other countries are not putting the money into the US at levels they once were. Just more of the “connecting the dots” that Lisa and I do. Just like we were doing back in August when people did not believe us when we said that the problems would get much worse. We connected the dots, and were still connecting those dots and the picture still looks grim.
More tonight… including some analysis on stocks that were requested in emails I received. See you later tonight..
Chuck/Lisa,
I don’t know how closely you guys follow Garmin (if at all). However, now that Garmin has left the bidding war for Tel Atlas and has secured a long term mapping contract with Navteq, do you have an opinion about buying in at the current price? Do you think the tech sector, in general, is to vulnerable to further market corections at this point in time?
Warm regards
I have been reading your blog for a few months now. I understand your
trading approach here is swing trading setups. Would you have any comments
about buying puts a few months out below recent swing price points? For
example, may be XLF, FXI, Q or IWM at a reaction off a swing point high or
break down through a swing point low. And a cut-loss set slightly above the stock price reaction point or break down price.
Your unwavering broad markets analysis is the BEST of common sense,
thanks to both of you for your cautionary stance both early on and often.