It’s been a long time since we’ve seen a 2% drop across the board. Europe is getting ready to close and my only rising indicator is Gold which seems to finally to be working again as you might expect – safe haven. I missed that trade, though considered it yesterday. Who’d have guessed the numbers today would be as bad as they were?
I’m adjusting a $SPY 130/125/120/115 condor and adding a bit to my short 120’s; if after the European close we break 130 I’ll add to my 130 leg, if not I’ll hold them through the weekend. The trend is solidly moving towards my target range of 120-125 for the $SPY. I’m going to stick with the spread and adjust with the swings.
My expectations are that we’ll see some positive headlines out of Europe this weekend. The bureaucrats are running around trying to find something good to spin at this very moment, you can be sure of it. Germany, red. France, blue. Ireland, green. Whether they’ll succeed in not falling all over each other is another question, but Hollande has by now probably plugged in his telephone.
It’s been ringing all week.