The collision of global markets and social mood

Wednesday, June 1, 2011

More Overnight Hijinks

1348 and 1357.27 still stand on the S&P cash. Yesterday's end-of-day ramp up and last night's hijinks have brought us back to where it started.

Good. I bought some SPY 134 puts at end-of-day. I immediately wished I hadn't.

Traders assumed "someone" knew something yesterday -- obviously they knew nothing. Try not to game news expectations. Whether it was expectations of a Greek bailout, or a vote to raise the debt ceiling, or a favorable ADP report, what looked great yesterday looks not so great now (for those that thought we'd have big follow through this morning).

Regardless, I would feel more comfortable if 1348 got tagged or the gap at 1357.27 got filled.

I'll likely dump most of the SPY puts at the open because it turned out to be such a sloppy trade. But since we're closing in on 1348, I may hedge them instead depending on how they open.

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