Bulls Pull the Market

"I never buy at the bottom and I always sell too soon" - Baron Nathan Rothchild's success formula


Automakers report results today. Geithner and Volcker both testify and speak. Tomorrow we have the ISM non manufacturing index report, which Barclays thinks went into positive territory in January. This could trigger movement. We saw the bulls pull the market right back in whipsaw yesterday. Call profits were simply extraordinary!!

-OEB100220C505 FEB 2010 505.0000 CALL was available as low as 5.76, just below prior day close, and hit highs of 8.35 by 2.00 p.m. Many traders reported getting in at prior day close and selling to 7.50 up.
This leaves us with an open and losing hedge put which we'll hold, as each resistance line we cross. This is a very OTM issue that could surprise us with upside potential, and allows us to lock call profits. Volatility is slightly increasing. Calls are now higher risk, as the bias has shifted, but in whipsaw.

The market stayed above SPX 1100, a strong resistance area, and held above 500 and then 505, key support areas.