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A Market Correction?

Today's move was not insignificant. It's not that the downtrend was extreme, but simply that the move may be the start of a much needed correction.  Earnings data from a number of bell weathers disappointed and the dollar gained strength on Geithners statement for a strong dollar - my opinion, the up move in the dollar was bad speculation.

Gold pulled back as its value moved lower on the stronger dollar, a positive for the expected continued uptrend in precious metals.  On Friday and Monday I initiated October last week, Bull Put spreads on the GLD with the expectation that share value remains at or greater than 132.  The support benchmark was broken today with new support expected at 130, but with the pressure leaning down if 130 is broken we could see a more significant short-term correction as profit taking accelerates.  While the 132 support was broken, it is not outside the possibility that GLD values move back above 132.

IBM is presenting an opportunity for a momentum trade as well as a range bound trade, with the momentum bearish.  Looking at resistance a 140/145 Bear Call spread for November looks good, and if there is premium worth doing at a 125/120 Bull Put and Iron Condor spread would be ideal.

Earnings is in full swing so expect volatility an maybe a bull market correction.

Disclosure: Positions are identified in the blog