12:10pm (EST)
The market has traded in a tight range following yesterday’s breakout to new all-time highs as the bulls and bears regroup. Bernanke dropped a lot of jaws after he hit it out of the park for the bulls with the bases loaded.
The bears had 2 outs in the ninth and were counting on a taper cut and a sell the news event. Although we predicted no taper cut, it was impossible to play the breakout unless you made your bets ahead of the news.
We were watching the action like a hawk and the instant the words “no taper cut” came out, the market soared. We were hoping for a little confusion and a slight tick lower to get in to play the run to all-time highs but the surge held as the bulls kept the majority of their gains.
We didn’t totally miss the action as we took a higher priced call option trade earlier in the week and we have other open positions that got nice pops. The even better news is that we have been patient waiting for the breakout and now we need to see if it sticks or if it was the last hooray ahead of what could be a nasty October.
Our homework this weekend should gives us better clues following Friday’s close and we are excited because we have said October will be an incredible month to trade options.
The Dow is currently down 26 points to 15,650 while the S&P 500 is lower by a point to 1,724. The Nasdaq is up 2 points to 3,786.
We ha a lot to cover with our Daily as we have a NEW TRADE and we could have one for our Weekly Wrap as well with additional updates for some of our currents trades.
Subscribers, hit the Members Area for the updates and stay close to your email inbox as we should have another update out shortly for the Weekly Wrap.
