Winning-Options.com

5 mins from opening today and futures are pointing to a lower start. After a run like that on Tuesday, market definitely needs a breather. Wednesday was Bernanke’s

day. A day where whatever he said was digested, vomited, re-ingested, re-digested, re-vomited….I’m sure many would have liked a follow-through, but market doesn’t quite care what we like, does it? A lack of follow-through on Wednesday usually signals a short-term pull-back.

Those in my private mail-list would have opened an iron condor yesterday. Depending on when your trades were executed, and no thanks the bid-ask spread, most of us should show either a slight loss or breakeven. Bid-ask slippage, for those new to the game, is part and parcel of option trading.

From here on, we sit tight.

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This is really a bad April Fool’s Day joke to all the short sellers. As of this writing, the Dow’s up 153 points and the SPX is up 17 points. Gold futures is down 30 points and I happen to know quite a few people who have gone long on gold, expecting the recent retreat to be temporary. Feel your pain especially if your stop hasn’t taken you out yet. Been there!

I’ve been waiting for quite a few days to initiate my May position. Problem with the rise in the market is the corresponding drop in IV.

Meanwhile, the rise is unabated. Dow up 225, Naz up 44 SPX up 24. These bear market rallies are really nasty !

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