Tuesday, November 16, 2010

Caught Off Guard

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I did not expect this level of selling today.   I thought we'd hover near the opening print and then try to make a run for that upside gap either very late today or tomorrow.  Technically, I should have laid on some index shorts via ETFs or puts once we broke S&P 1192 and kept them until/unless that level was broken, but due to my inclination on how I thought the day would play out I chose not to.  Can't win 'em all, but I am definitely caught off guard by the velocity of this move.  Once the POMO of the day did little to mark up the market, the selling  came on.  We had our POMO run just after 10:15 AM, and all downside from there.

Apparently news in China means much more than anything out of the U.S. as economic data has been mixed and benign the past 48 hours.  Already the index sits at the S&P 1180 level, 10 points away from key support at the 50 day moving average.  90 more points to go for the 'gap fill' at 1090 ;)



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