Market is beneath two overhead resistances. S&P should find resistance at 1296 and then at 1307. Investors are nervous, but money on the sidelines is driving the market.
JP Morgan will report the result before the market open on Friday. No matter how strong the results will be; S&P is not expected to close above 1307 tomorrow. Market may open volatile, but should settle in a narrow range.
Banks looks overbought. Banks triple leveraged ETFs, FAS and FAZ should see action tomorrow. I will buy FAZ (shorting banks) on any strength in the morning.
We still have two market neutral positions open. It will be either 15 to 25% gain or a loss of approximately 10%. I must rollover/ close both positions tomorrow. Portfolio is already up 29% in just 12 days. Total gains are 228%.
Is that MA 13 Jan 127 call correct strike price?
ReplyDeleteSorry, read as MA 13JAN12 340.0.
DeleteI closed this position at $2.90 in the morning. Ir should have given easily $3.20, but a morning surge in MA panicked me. Anyways good 30% gains.