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Market Oscillates In A Tight Range: SPX, Nasdaq, GLD, GMCR, CLF, GR, CMG, BWLD

|Includes: BWLD, CLF, CMG, SPDR Gold Trust ETF (GLD), GMCR, GR

It has been another wild week.  So far, the market has changed direction every single day:  down on Monday, up on Tuesday, down on Wednesday, then up on Thursday!  We did trade quite a bit.  With the market being so volatile, the trades were also fast.  We traded GMCR a couple of times and got some nice gains.  We also traded GMCR puts in the Trading Room on Monday:

October 17, 2011 9:13 AM

October 17, 2011 9:29 AM
coming down to test $80

October 17, 2011 9:29 AM
85 puts flying

October 17, 2011 9:34 AM


October 17, 2011 9:35 AM

80 puts $1.8 to $3.6 in 20 minutes

October 17, 2011 9:43 AM
has a gap around $65. really??

Today GMCR came down as low as $63.26 and successfully filled the gap.  It was definitely harder to keep the trade on when the broader market was so volatile.  Nevertheless, we traded GMCR puts again yesterday in a couple of published trades.  GLD was a nice overnight winner as well:

  • 04:11 | HappyTrading NFLX ($111.30) Sold to Close 10P110 Oct 110 put, at $1.65 -50%
  • 07:01 | HappyTrading CLF ($56.80) Sold to Close 10P60 Oct 60 put, at $3.40 +27%
  • 06:53 | HappyTrading GLD ($158.00) Sold to Close 10P160 Oct 160 put, at $2.45 +53%
  • 06:43 | HappyTrading GLD ($157.65) Sold to Close 10P160 Oct 160 put, at $2.75 +72%
  • 01:03 | HappyTrading APA ($91.50) Sold to Close 10C90 Oct 90 calls, at $2.15 -4%
  • 12:49 | HappyTrading GMCR ($71.00) Sold to Close 10P75 Oct 75 put, at $5.20 +20%
  • 12:35 | HappyTrading CLF ($57.20) Sold to Close 10P60 Oct 60 put, at $3.30 +24%
  • 11:40 | HappyTrading GMCR ($74.80) Sold to Close 10P80 Oct 80 put, at $6.10 +74%
  • 11:31 | HappyTrading GMCR ($75.20) Sold to Close 10P80 Oct 80 put, at $5.60 +60%
  • 10:50 | HappyTrading GR ($121.95) Sold to Close 10C120 Oct 120 calls, at $1.95 +50%
  • 07:07 | HappyTrading GOOG ($587.00) Sold to Close 10C590 Oct 590 calls, at $3.80 -30%

The market has been kept hostage by Europe, being whipped back-and-forth as headlines come out, even overshadowing earnings.  This morning, BWLD delivered a solid earnings report, sending its shares up more than +7%.  After the market CMG reported another stellar quarter.  Its shares added +3.76%.

The Dow was up +37.16 points; SPX added +5.51 points; Nasdaq slid 5.42 points:

SOXX (semiconductors) was down 1.7%.  OIH (oil services) gained +1.29%.  XME (metals and mining) climbed +1.13%, although JJC (copper) dropped 4.33%.  GLD (gold) and SLV (silver) were also down.  XLF (financials) advanced +1.51%.


SPX added +5.51 points to close at 1215.39.  its daily MAs and MACd went higher.


Nasdaq slipped 5.42 points to close at 2598.62.  Its daily MAs were up, while the MACD was flat.

During this week, SPX has been oscillating between a tight 30-point range (1200 to 1230, give and take a point or two).  We have been trading small and keeping lots of cash.  In an environment where the market is just treading water and consolidating, it's good to be cautious.  Techs have been on the weak side this week, especially after AAPL's surprise miss.  Financials, though, have been impressively strong, which we discussed on Tuesday.  Tomorrow is expiration day for October options, and, it's Friday.  The market might be in a tight range again.  It seems the market is waiting for clearer development on solutions for Europe's financial problems.  We'll likely to continue to hold cash and wait for the market to make its next move.

Good night and HappyTrading! ™

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