If this is the start of some big volatility in markets, then buckle up...it's going to be wild. Perhaps this week will be typical of what we should start getting used to, or maybe things will start to settle down. I'm not sure but this certainly has me concerned. Many events seem to be hitting this market in a big way. Technically the SPX is on a sell signal on several of my indicators, volume is not coming in big on the up days and frankly any buyers are likely short covering. Precious metals are strong and have been for awhile and may be ready for a breakout. High oil continues to plague the markets and with the turmoil in the Middle East just building, that could be a problem. And then there is the calendar - it's MARCH folks, it's not OCTOBER-DECEMBER, so we face seasonality issues. Throw in the inflation concerns and you can see there are many reasons to sell - and the ONE reason to buy is not there. It's no wonder the VIX had a massive rise this week, touching 31 at one point Wednesday. Protect gains and be ready for some downside plays.
We're starting to heat it up with some great trading results on both sides of the market. Not a member yet? Easy to do! Sign up using this link and for a very modest amount you will be getting trades regularly. The ones below were caught in just a very short time. Ready for profits?
We spotted a couple of nice winners this week on the put and call side:
# March 18, 2011
# 06:37 | Bagger Vance JOYG ($92.90) Sold to Close JOYG MAR 90 CALL Mar 90 calls, at $3.00 -55%
# March 16, 2011
# 08:50 | Bagger Vance BTU ($68.70) Sold to Close BTU APR 65 CALL Apr 65 calls, at $5.40 +35%
# March 15, 2011
# 08:14 | Bagger Vance MET ($42.40) Sold to Close MET APR 48 PUT Apr 48 put, at $5.85 +77%
# 07:43 | Bagger Vance AFL ($48.60) Sold to Close AFL MAY 55 PUT May 55 put, at $7.70 +133%
# 07:42 | Bagger Vance SPY ($127.70) Sold to Close SPY MAR 130 PUT Mar 130 put, at $3.05 +79%
Have a very pleasant weekend!