Wednesday, April 28, 2010

Thank the Market Gods for Premarket

S&P futures were down in very early morning

S&P futures moved up to flat at 7 AM

S&P futures up half a percent by 8 AM

Not sure why they bother to keep the market open between 9:30 and 4:00 PM anymore other than to lavish 7-8 firms with huge rebates for providing "liquidity"... volume is dismal on up or sideways days and only shows up on down days.  Just open the market for a premarket session each day and we might be at S&P 3000 in no time.

S&P 20 day moving average bumped down a bit to 1193 level, one most certainly would assume we are lifted right to that spot and then we see if we are about to experience another "V shaped" move right back up.  As I said in the closing piece yesterday, a break of the 20 day moving average which sends us to lows of the past 2 weeks should have meant more downside.  But only in theory... not in the new paradigm market where something like half the gains of the past 13 months have been in premarket.  Mark down another "win" for premarket.

I will be dumping my SPY puts for roughly flat.


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