The 5% Diet
“The whole story is interest rate worries.” – Stephen Carl, head trader Williams Capital (subscription required) “A lot of people are trying to come to grips with the idea that the Fed is just as likely at a future meeting,…
Market Holds Record Levels on Positive Economic Reports; Bullish Sentiment Returns; 10 Year Treasury Yields Approach 5%
Lot’s of good economic news, or economic news that has been interpreted as good, the last couple of days. Yesterday (Thu) before the open, The Commerce Department reported that preliminary estimates for 1Q 2007 GDP had been revised down to…
Back to Obsessing About the Fed; Range Trading on the 10 Year Treasury; Market Out Of Gas For Now
You know Wall Street couldn’t go more than a few weeks without obsessing about the Fed and if there is going to be a rate cut this year or not. I swear to God…… The immediate cause is today’s April…
As Market Climbs, So Does Short Interest
Short interest on the NYSE rose 4.6% (subscription required) for the monthly period ending last Friday April 13. That’s on top of a 9.5% rise for the previous monthly period ending Thursday March 15. That’s an overall rise in short…
A Breakdown of Today’s Trading in Nasdaq 100 Trust (QQQQ) Options
Puts Calls Put/Call Ratio February 117,646 134,162 .88 March 236,974 160,127 1.48 April 43,401 9,966 4.35 Source: Scottrade, as of approx. 3:00pm EST What this tells us, I think, is that there are still alot of bears out there. Even though options buyers are…
Tech Wreck Stops Market Rally Cold
Wow. What a turn around in just a few days. When I was writing my previous post after the close last Tuesday the market was starting to look up. We’d had a nice rally on Thursday and Friday (Jan 11…
Notes on the First 9 Trading Days of 2007
We’re 9 trading days into 2007 and I thought I’d comment on some of the things I’m seeing in the market. (1) Changing Perceptions About the Fed – When the Fed minutes were released on the year’s first trading day,…
Do You Love It Or Do You Love It????? – The Dow and S&P Rally Off Early Lows to Bounce 15 and 5
After yesterday’s huge sell-off I wrote: What say I? DON’T PANIC. Jim Cramer always likes to say: “Nobody ever made a dime by panicking”. In fact, this is the time to have trust in your reasoned convictions and double down. …
The Market Gets Hammered – The Dow Down 158 points and the S&P 500 19 Points on Monday
Great! Right after I tell everybody to go long the S&P 500 by buying call options the market has it’s worst day in 6 months. The Jan07 SPY 137 calls that I recommended lost a third of their value today…
A Trade the Stars Are Lining Up For – Go Long the S&P 500 for the Rest of the Year
The Wall Street Journal ran a great article on Monday titled “How Skepticism Can Fuel a Rise: A Rally Too Good to Believe Also Has Cash Waiting to Enter; Acute Optimism Is What to Fear” (subscription required): ‘It is taking…