The S&P In Steve McQueen's Favorite Spot

"I'd rather wake up in the middle of nowhere than in any city on earth." -- Steve McQueen

The S&P had a great rally yesterday, but never made it to 1300. It didn't even make it to the highs of last Tuesday. It now sits in the middle of nowhere. Steve McQueen would love it.

Whether he'd lay his money down is another question.

I can only say that it can go a little lower before it goes higher, and that I'd like it to go higher before I put money on it going lower. Like McQueen, I love the middle of nowhere, but not for trading.

It's Friday and volumes could be light. It's easier to push the market around when volumes are lighter. My stance today is to take it easy and be patient while stalking the fringes.

Speaking of being patient, I'm still long USDJPY from the evening of the Fukushima disaster, still long USDCAD from April, and still waiting to take profits in USDCHF at .8450 and hedge it with 6S. Patience is not taught in the FX market. I think it should be. It is capable of trending for YEARS not just hours or days. The risk/reward ration is therefore quite compelling to me.