Markets grinded higher again yesterday. On the market internals we saw NYSE A/D line at +1400 and breadth at 70%. Strong bullish sentiment as well with cumulative ticks finishing at +70,000 which is a very bullish number. Only downer for the bulls was all of this came on the back of very, very low volume (I'd say close to multimonth lows) so it's telling me that there is still a great deal of uncertainty about making any big bets going into the Fed meeting. Overall, I see the path of least resistance as higher at this stage but the price action would say that perhaps we might need a bit of a pause or a pullback to get another leg up. There is mostly a lack of conviction in this market at this price level which would be in agreement with some of the sentiment out there. It will probably take another big push up to convince all the fence sitters that this market is indeed going higher.
On the trades front, I did not manage to get filled on my OEX put BWB (strikes at 510/505/495) and on an unbalanced fly (1/3/2) at 505/500/495. Actually I took some positions off such as my AAPL earnings BWB (for $1.79 credit) and my GS earnings BWB (a paltry $0.11 credit). I have a very light position on the RUT (short some put spreads) and have the ZB iron condor (which decayed a bit over the last few days). Overall I'm like everyone else, waiting for the next move or waiting for the market to give me some kind of edge. I'm still cautiously bullish on this market.
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