Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 31, 2013  Thu 8:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
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

SPX

Options and high-frequency trading

April 18, 2014

There has been much talk lately of high-frequency trading and what it means to the markets and retail traders. The big issues and arguments all point in favor of options.

SPX

Stocks in range as earnings flow

April 17, 2014

This morning's big companies--Goldman Sachs, General Electric, Morgan Stanley, and PepsiCo--are all trading higher after beating estimates.

SPX

GE, Goldman, jobless claims on tap

April 17, 2014

Earnings and jobless claims are the main events on today's calendar. Trading will likely be light with markets closed tomorrow for Good Friday.

SPX

Futures rise, halting recent slide

April 16, 2014

S&P 500 futures are up more than 0.5 percent, while the Nasdaq is up almost 1 percent. Most European indexes are up a similar amount, while Tokyo led Asia with a 3 percent rally.

SPX

Earnings, housing data on docket

April 16, 2014

Today's calendar includes earnings from Bank of America and Google, plus housing data. Economic headlines start early with European inflation, which could affect the euro and energy.

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER