[Weekend Summary]
Dear Member:
Market direction next week may very well provide key information on whether or not the bearish retracement has run its' course or not. Referring to the big jumps Wednesday and Thursday, Investors Business Daily's "The Big Picture" today noted:
"Volume didn't swell as much as you might expect on such hefty gains.
....
That gave the market a feeling that it was feeding on a sugar rush rather than solid protein."
I quoted it because I couldn't have said it better. I'm holding my Dec puts on the Q's for now. Today was options expiration day (as part of triple witching) and QQQQ closed right where I might have expected -- on a support resistance. I have to wait until next week to see whether I'm in or out.
Much the same is true with my 110/111 bear call spread on the Diamonds (DIA). I am short the Jul 110 calls and long the 111's. If the Dow 30 drop, I won't need to do anything. If it looks like the bull is returning, I'll close the short 110 leg and try to profit on the upward move with the 111's I own.
There are some similarities with my long term calls on SPY and BBH. If the market drops, I'll try to sell some short term calls against those positions fairly quickly. If the market returns to the bullish side, I'll just watch them go up.
I had several "kiss your sister" positions this week. Nothing much to worry about for the time being with my spreads on XLK, SIRI and MU. I would like to see some movement to help my straddle on Conoco Phillips (COP).
It's my guess that the early part of next week will give a whole lot of information on where the markets are headed.
Thank you for subscribing and have a great weekend.
Bill
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