Thursday, July 18, 2013

Incredible Session...


Even I'm beginning to get excited about this rally as my newly added SD calls started showing some meaningful green and I suddenly started humming along to the Popcorn Song right about mid-session.  I was also doing cartwheels over my SDR and PER calls as WTI caught up to Brent and for once, I had seemingly stumbled onto the right side of the trade.

Disappointingly, or perhaps ominously, the rest of the calls I bought when the SPY previously hit these levels are all still in the red.  

In light of a predominantly uptrending NYSE and Nasdaq with markedly increased volume, I decided to add some SPY puts right near the 50 SMA in case the SPY corrects and moves towards its 200 SMA.  

I figured that the 200 SMA may be an intermediate support level, but the 50 SMA could yet break once again, especially if people get caught off guard and once again start aggressively doubling up.  The increase in volume is what I'm keeping an eye on.  

If a breakdown happens, the reward level would be the gap between the 50 SMA and the 200 SMA - roughly 115 points, or 7%.

The MorningStar web site has a really cool US Treasury Yield Curve page that allows you to compare today's rates with rates from 1, 3, 5, and 10 years ago.

We're just points away from hitting rates from 3 years ago, which means all of Bernanke's good work has been eroded away!  


After Hours Economisses: 

Detroit filed for Chapter 9 bankruptcy
Microsoft missed
Google missed

In the same breath, Moody's upgrades US Rating to AAA


+3.76% SBA
-0.85% Roth IRA

+0.50% DJIA
+0.04% Nasdaq
+0.50% S&P 

+0.95% FTSE
+0.87% Eurofirst
+1.32% Nikkei
-1.05% Shanghai
+0.90% SENSEX
-0.12% Hang Seng

+1.47% WTI
+0.17% Brent
+0.55% Gold
+0.05% Copper
+0.46% Corn

+0.87% USD/JPY
+0.78% EUR/JPY

+1.65% DJT
-0.07% VIX

+1.73% 10-Year US Treasury Notes


65% Advancing Issues on NYSE    |  68% Up Volume
32% Declining Issues on NYSE     |  31% Down Volume
3% Unchanged                          |  1% Unchanged

60% Advancing Issues on Nasdaq   |  54% Up Volume
36% Declining Issues on Nasdaq    |  43% Down Volume
4% Unchanged                            |  3% Unchanged



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