Sit On Your Hands Day

Japan lowered their prime rate yesterday and the market jumped.

For those that bought the call the day before on the downside move huge profits were possible.

Following the market opening no puts would have been bought.

With the upswing yesterday we have approached market tops.

The market has more upside, perhaps to 11,224 through 11,310 but a slight retracement is likely to occur.


The Dow hit theoretical highs of 11,005 and lows of 10,712.63, with a total movement of nearly 200 points.

We will not trade puts or calls today and let the market breathe. I am simply unsure of how the market will react to such swings in trading

Today is sit on your hands day


Do not chase any trade in this market, put or call. Follow our option signal rules to the T to win, as it's in the volatility this past few weeks that we've had the greatest success.

And remember to always have sell signals in.

___________________________________________

Real facts: The market has rallied 38% in 90 days. Almost 2500 Dow points from 3/9 to 6/11 alone moved, and from there has moved up an additional 1400 points, or 17%.

This is a fast upside, perhaps too fast.

We have also noticed, in recent weeks, that Down openings 80% of the time lead to UP closings. Don't know if this is a long term pattern, but it's a clear short term one.

Earnings reporting begins in earnest this week, and results will suddenly become our reality.