Comment by phil

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phil
October 12th, 2010 at 9:42 am

Good morning!  

I will not be here tomorrow until afternoon.  Tomorrow we have Morgage Applications (not good), Import/Export Prices (probably bad) and Crude Inventories but hopefully we get a good sell-off today so we can all relax a little bit.  

 

Levels are the same and I’m still looking to see if we hold those 5% lines into expirations.  The critical test levels above 7.5% are Dow 10,950, S&P 1,160, Nasdaq 2,400, NYSE 7,450 and Russell 690 – THREE RED, after being all green yesterday which was, as I said, a BS, low-volume day.  Our other levels on the way down are:   

• Up 7.5%: Dow 10,965, S&P 1,146, Nas 2,365, NYSE 7,280 and Russell 672
• Up 5% (must hold): Dow 10,710, S&P 1,123, Nas 2,310, NYSE 7,140 and Russell 666 
• Up 4%: Dow 10,608, S&P 1,112, Nas 2,288, NYSE 7,072 and Russell 660
• Up 2.5%: Dow 10,455, S&P 1,100, Nas 2,255, NYSE 7,000 and Russell 650

We took full advantage of yesterday’s open to get shorter and now it’s just a watch and wait to see what sticks kind of day.  If you rolled or doubled down – DON’T BE GREEDY – try to get back to 1x even or better and keep tight stops, especially on weekly puts like the DIA Oct $108 puts, which are heading to .30 and the QQQQ $49 puts, which are still .22 – we are too close to expiration to take chances!!!  

There’s no volume to this morning’s sell-off so far but we have a lot of data still to come and the Fed minutes will be a real market-mover this afternoon so expect a very active Chat session today!