Options Trading News

April 8, 2013  Mon 9:12 AM CT

Everything's so compressed. First you get the shock, the unbelievable two-by-four to the head, from this hideous employment number. Stocks then get hammered, as well they should. That's the bear phase.

Then we get a realization that the 10-year is yielding through 2 percent and the 30-year is about 2.5 cent. That means stocks with 3 percent yields are terrific.

TheStreet.com logoThen we get a wave of buying from overseas seeking a home.

Then we get a realization that the cyclicals have been pummeled for days and that perhaps they are overdone.

Then we see that there was no panic, and we buy EXCEPT where there is earnings weakness possibilities, like F5.

There's only one issue. This cycle starts anew EVERY DAY, and Monday will be the next one!

Disclosures: Cramer's charitable trust has no positions in any stocks cited in this article.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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