Excitement of higher China GDP growth faded by the market close. Banks were under pressure after Citibank missed the estimates. Soon, we will see a big-day move to either upside or downside. Holiday shortened week has only three more trading days.
I am expecting downside in the global market on Wednesday. China's market is overbought with about 3% gain yesterday. I'd buy FXI puts tomorrow if this stock shows any strength at the market open. I got into BBT Put, which looks overbought. BBT will report the financial result on Thursday. Either I will get out of this position tomorrow or sell Jan 27 Put to make it a spread which will reduce my investment and risk. Currently, this position is sitting at a 7% profit.
No matter how the market trade in a short term, it is likely that the market will be higher from current levels in the first week of February.
As expected, GS is over 5% after reporting the decent results (see earlier post). It should find resistance around $105 today.
ReplyDelete