It's interesting to note that volume was quite heavy yesterday and well above the 30 day median average. However we do have to keep in mind that it is OpEx week after all. Cumulative ticks finished squarely negative settling in at -30,000. Other market internals were weak as well but nothing to panic about for the bulls. I've been reading some research that suggests we could be in for a mild pull back next week based on seasonal factors. At this stage I don't think we are going to see any sustained large moves before the FOMC meeting. Market seems to be treading water and no one really wants to show their hand just yet. I think there's more than a few people just positioning themselves ahead of the meeting. Interesting that treasuries are selling off a bit. Perhaps there is a whisper that the Fed will not be buying as much as people expect? Maybe stocks will follow the path of treasuries?
As a side note, I'm looking at an opportunistic play on ESI. It got hammered along with a lot of other education stocks yesterday. Looking at selling some vol here and anticipating that it will fill the gap in a month or so. Looking at using the 60/55/45 November Put BWB trading for around $0.28 credit.
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