Here is what Im thinking

The market is going to walk around the middle line until Wed announcment from the Fed on Interest rates. Ive been playing this, which is why I sold the puts and made some coin early and skipped the gap fade. I wanted to lock in a bit of profit, and I gambled that would come back up from its drop. Which it did.

Ill be looking to purchase more puts later on today once it comes up a bit more. If it doesnt, I still will purchase some puts. I want both sides covered for wed. announcment. Last time the fed announced about rates, the market went haywire and went the opposite way I thought it was going to go. If I remember correctly it dropped after it climbed after the 'no rate hike' decision. I bet on the market to roar, and I was way wrong, instead the market saw no rate climb as a negative, as in the market was still sick, so the market dropped and I was caught on the wrong side. This time I have a spread.

Talking about Interest rates....

The call

David Stockman, a former budget director for the Reagan administration, is at it again. He has been a steady bear in the face of this resilient market, and now he’s got a specific date for what he sees as the beginning of the end for this bubble: December 16, when the Fed chair takes the mic. “Yellen and her posse better pray for a monetary Tonto because they are riding headlong into an ambush in the canyons of Wall Street,” Stockman wrote. “To wit, they cannot possibly raise money market interest rates — even by 75 bps — without massively draining liquidity from the casino.” Read more on why he says the “Gong Show” begins Wednesday and will have dire ramifications for stocks.

It will be very interesting how this pans out. If they do raise, I would GUESS a big drop. But who knows. Thus my spread. (I will purchase puts later today on the cubes, I already have the calls.)

Come on back later for my in with the puts.

Tradinginsider