All talk and no action from Mario Draghi leads to a bearish day.
We are going to enjoy today’s selloff and we will provide you specifics of what went wrong in Europe tomorrow morning. We will let the talking heads and Wall Street pros speculate on when or what should have happened from the ECB (European Central Bank) but we are more interested in our current put option trades which are showing strong gains today.
The Dow is down 148 points to 12,822 while the S&P is off 15 points to 1,360. The Nasdaq is lower by 19 points and is right on 2,900. We have mentioned support levels all week for the major indexes and we would love to see the bears crack them by the close. However, we can’t get too excited because the bottom line is we are still in a trading range and tomorrow is a big day for economic news.
Given the recent volatility, we wouldn’t rule anything out but it appears the market is headed lower over the next few weeks and back to the bottom of the current 3-month trading range, or worse.
Subscribers, check the Members Area for the updates and stay on your toes. We may send out another New Trade but we wanted to get this quick update out as we do some homework.
Special Note: We are currently doing chart work and checking the premiums for the New Trade and if we do send out another new recommendation, it will be by 2pm (EST).