Interesting Trading Opportunity Heading Into Thursday!
Yesterday, the market tried to push higher in very light volume. At the end of the day, the gains were negligible. Today's action feels like déjà vu. The market opened marginally higher and now it has drifted back to unchanged. We are at the highs for 2009, but shorts have not scrambled to cover positions. That is because they covered months ago and they have not re-established positions. If they had, we would see rising (not falling) implied volatilities. Resistance at this level is strong and profit-taking is keeping this rally contained. There might be a trading pattern that we can …
December 29, 2009
• Posted in: Options
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