Yesterday the market opened and dropped to a theoretical Dow bottom of 10,284 before beginning to hesitate, and move up to highs of 10,573 by early afternoon.....to fall again to 10,350.....to rise again....by noon we had great profits on our June450Put selling to highs of 5.50. We traded this put earlier this week, buying as low as 2.95 and selling to 4.40. We're at the same juncture now with a two buy made to the call, and profits today on the put from 2.95 lows to 5.50. Only traders that held the put from earlier this week could take these profits, but tight .50 day trade profits were possible several times during the day as the market whipsawed.
Only when the FOMC announced that "free money" was continuing and the fears of inflation abating did the market actually stop its freefall.
This is a battle of false facts. America is FEARFUL of Europe, Europe is FEARFUL of what they have wrought, and oil streams around our shores.
We are a nation on an "edge." This shows classically in the market, with the massive whipsaws to an overall 10% correction. And, as you know, I believe it became 10% because the market rose too quickly, things got "better" too fast, and VIX fell to all time lows of complacency.
The market is now "the world" and the instantaneous news fills our moods, while electronic trading consumes our market.
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