It’s another interesting day in the neighborhood. While US Stocks are herky jerky sloppy, the Nikkei keeps cruising higher. So while the Nikkei keeps responding to QE, the US markets are responding to government officials trying to talk it down. Who will win in the end? In the end, the market forces rule. Technically, yes, this market is so overdue for a pullback it hurts. But, technically, all we are doing is consolidating near recent highs, which is bullish.
For today there have been some great opportunities to sell PCLN put credit spreads, which we did in the Simpler Options room this morning. The rest of today is looking like a little “hurry up and wait” for stocks while we watch bonds, gold and oil get hosed. The reality is, with gold getting hammered that usually creeps its way into stocks. Next week is monthly options expiration and it should be anything but dull. Stay nimble.