If you’re reading this, you’re sitting on your hands like I am, for atleast two reasons:
- The FED hope for QE (atleast OpTwist 2) has been built in over the last 70 or so S&P points
- The VIX hasn’t moved much lower relative to those 70 points.
A third might be the Put/Call ratio on the SPX Index. At 1.15 it’s only been as low 15% of the time over the last year. I personally hate playing a market that is so fully driven by hope for FED money printing, money flow, QE, or whatever else you want to call their interference. I’ve rambled already about that here.
I’m not sure how I’d trade this but movement this morning is Gold or the GC futures have surprised me. The GC is falling under 1600, a 1.4% decrease.
This strikes me as odd of the hope for QE still holds for Gold traders.
In any case, good trading and good waiting.