From last Thursday:
“This has been a tough tape to read folks but I do think the market is climbing a wall of worry. I’m okay with that but I’ve been successful because I normally have a good read on the market. There are times though that I still get “faked out” but overall I can spot the trend…I still think we get a scare from the bears before too long.”
This is why we opened up some put positions last week…
Wall Street is going to have a rough open. The futures are down sharply this morning before the opening bell after overseas markets extended the heavy selling that began on Friday. In overseas action, the Shanghai stock market fell nearly 6% and the major markets in Europe were all lower by more than 1.5%.
Dow futures are down 157, to 9144. S&P 500 futures are off by 19 to 986, while Nasdaq futures are lower by 26, to 1,589. By my calculations that gets us at least a 125 point drop on the Dow at the open.
As far as our trades, the call options may take a slight hit but that is why I went so far out on them. We have put options on Abercrombie & Fitch (ANF, $34.25) and Wells Fargo (WFC, $27.73) that should open higher this morning. In fact, Wells is down 94 cents in pre-market trading.