Ok. Some decent market meander.
SPY futures down and open and dribble beneath 1200.
Ok. Finish the day with low volume dribble with a late day shrug back toward 1200 but not quite doing it, maybe 1198.
The other day I figured a little more of a tank, but this guarantees NO FOMC ACTION!!!
But, the motormouths will declare "the 6 day winning streak has ended".
So, tomorrow, market opens again down 10-15 points on the SnP500 and motormouths say "oh, well the Europe situation and uncertainty about Fed action, well maybe traders are a little cautious".
What BS. Engineered is what they call this. Step it down, slowly, easily, let the VIX soften a little and then WHAM, BANG, AND HELLO.
Open thy wallets and buy. And if you shorted last Thurs/ Fri (IBM @172 a great short term short, look at this morning's skittishness), then cover.
Get ready to start your engines 'cuz da show's 'bout to start. Not Feb 09 kinda buys but still good stuff. Sell the long dated puts 10-15% below the bottom, have sufficient margin to cover any catastrophic near term drops (hey these guys are good, witness early '09) buy EOY and long dated (I use a 25/75 ratio) calls just ITM or real near and sit back.
Also, whatever longs you can throw in the knapsack, go for it and be ready to sit. Traders may get a pop in early Nov with a minor reset before EOY, but for me, once I settle in with CAT at 78, IBM at 153, DE at 67, etc etc, I am not going to do anything except wait.
And on GLD, buy this week at 168 on Thursday. Why? Because, no Fed action will get movement out and it could drop below that and I will say that with a VIX rocketing back above 40, GLD will move with it back to 180 plus. I sell mine and short more at any price north of 1900/oz pending the blowoff to 2200. Now that will be fun.
It's A New Week (or is it?)
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.