I'm sorry to be repetitive, but this chart is worth it. I doubled up my puts on CMTL today. They just don't get much cleaner than this.
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I'm sorry to be repetitive, but this chart is worth it. I doubled up my puts on CMTL today. They just don't get much cleaner than this.
Given the market's resilience to bad news lately (the swine flu being the latest example), I thought a guide to news events and their effects on the market would be helpful to Slopers.
| Event | Net Effect on Equity Markets |
| Threatened nuclear detonation in major U.S. city | Quick drop on Dow of 30 points, followed by major rally, particularly in building material stocks. |
| Successful detonation of nuclear bomb in U.S. city | The Dow plunges 50 points and holds its lows most of the day; next morning is seen as buying opportunity. Dow +210. |
| US Treasury declares all national currency in circulation is now worth 5 times its nominal face value. | Dow soars 600, easing back to 550 by day's end. |
| Chili's and Cheesecake Factory issue a joint press release stating that leftover onion rings taken home may also be used as effective marital aids. | Relatively small effect on Dow, but restaurant stocks push 32% higher. |
| JP Morgan, Goldman Sachs, and B of A announce they are all bankrupt, due to having dispensed remaining corporate assets to executives into a special retention bonus program. | FAZ finally pushes higher – this time by 7 cents – before collapsing to sub-$1 for reasons no one can explain. |
| Geithner picks nose, discreetly pulling out booger. | Quick spike of 70 points. |
| ….then eats it. | Followed by fresh surge of another 50 points. |
I've had pretty good luck trading DBC, and I've got to say, I'm liking it more each time. It's got a nice, clean stop at 19.09, and if I allow a little bit of a fundamental analysis creep in to my thinking, I only like commodities more.
Maybe God read my braggadocio about my circadian rhythm and decided to teach me a lesson, because I woke up late this morning (half an hour into the open) for no good reason.
Last night the /ES was down over 20 at one point, but as of this writing, it's recovered more than half of that. Is this going to be a repeat of last Monday, where we get a little drop only to soar higher the rest of the week? I won't speculate on that right now; what I will say is that it's pretty important we at least snap under 833 for this to get any more interesting for the bears.
Time to play catch-up…….
See you folks in the morning for what probably will be an interesting open.