Options Trading News

January 31, 2013  Thu 8:14 AM CT

We've been raising cash for my charitable trust because we figure that stocks don't grow to the skies, and that's where they were headed. We bet that the Fed's outlook would be a good excuse for others to sell, and the uncertainty of Friday's employment number only gives you another excuse to ring the register.

I mean, you can only go up so much on the same news over and over--and the news is fine, not blowout. We had a weak GDP number (which was explained away). We had earnings that are fine. We had housing that is fine. We had no growth in Europe--and that is fine, too.

You can only go up for so far on "fine" without feeling like Larry Fine, the dumbest of the Three Stooges.

All that said, I think this market remains in "Mason Storm" mode, the Steven Seagal character in "Hard to Kill." In the movie, Storm was shot and remained in a coma for years but came out strong enough, after some training, to take on a corrupt politician and an army of thugs--and he managed to prevail because he had a superior attitude and a superior state of mind.

I like the imagery, if only because it is a reminder of a market that seems fictional in its run with almost every sector performing well.

Of course, if we get something "better than fine"--meaning a couple of upside surprises from some of the remaining industrials and retailers and a decent employment number--we could be right on track.

In the interim, after enjoying the best January most can recall, we're back in the coma stage for the moment. When the market comes to, I wouldn't be surprised if it challenges those highs that are so tantalizing right now but aren't yet ready to be taken out.
Share this article with your friends

Related Stories


Stocks keep upward momentum

October 5, 2015

S&P 500 futures are up 0.7 percent, while most of Europe is up 2-3 percent. Asian markets rose 1-2 percent overnight.


ISM services lead quiet agenda

October 5, 2015

The agenda quiets this week, though quarterly earnings will begin to flow. European retail sales are the first event early in the session and may have affect sentiment.


Stocks drop after weak jobs report

October 2, 2015

S&P 500 futures are down more than 1 percent after non-farm payrolls missed forecasts. Bonds and gold moved higher.


Monthly job report leads calendar

October 2, 2015

Due at 8:30 a.m. ET, the report is expected to show that 205,000 jobs were added last month, up from August's 173,000 gain.


Stocks higher before ISM report

October 1, 2015

S&P 500 futures are up 0.2 percent but well below their pre-market peak. Europe has traded similarly, with Germany turning negative while France and Italy are up about 0.8 percent.



The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »