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A Day's Trend Does Not a Trend Change Make

The Eurozone, the Euro, the European Union, playing havoc on market volatility and direction as investors link it's monetary unit, it's debt to market direction.  Today China reversed course and decided to support long-term investment in the EU, giving the markets reason to buy.  The result was a significant bullish day, but...and, I must ad, the "but" nothing has change regarding the trigger that put the markets in a corrective mode.

Oversold?  Not anymore.  Will support benchmarks hold?  Maybe, but Put options activity hasn't in reality subsided and some of the equities I'm trading had Call option volume that was initiated by Sellers, a bearish indicator or at least a resistance indication - AMZN and AAPL come to mind.  The CBOE Put/Call ratio total ended at 1.04, bearish, likely hedging the long Stock positions.

Today's economic data, GDP and Initial Claims came in weaker than expected with new filings for unemployment continue to "baffle" the talking heads as they ponder and wonder why since many major corporations are in a hiring mode.  The answer my friend, is not blowing in the wind, it lies in Small Business numbers.

Oil pricing moved higher on President Obama's press conference as he commented that drilling in the Gulf of Alaska and else where, at least new permits and construction will be suspended until further review.  Apparently he didn't' get the memo that it was his administration that approved the construction and granted safety awards to the BP platform currently causing environmental and economic chaos for the Gulf States.  Certainly, he needs to review actions and inactions under his direction or indirection. 

Summary:  The Euro will lead market direction.  That being said, after market hours the Euro is down, which means you'll see that reflected in Futures trading an indication as to how the markets are likely to open tomorrows trading session.  With Memorial day, expect Friday's trading to be low on volume and a time to book profits as Monday the US markets will be closed.

CTM Trades:

AAPL - Closing the June long puts on AAPL, if Share value breaks 240 I'll add another set of long puts.

AMZN - Closing the Long puts on AMZN, if share value breaks 120, I'll add another set of protective options.

SPWRA - Closing the Long puts on SPWRA, if share value breaks 12.50, I'll add another set of protective options.





Disclosure: Long on AAPL, AMZN and SPWRA