Europe is down and gold is over $1600 this morning. Evidently the market is no more comforted by the results of the so-called stress tests on European banks than it was before.
US index futures look really bad this morning, but they are really just in the middle. They are correcting their excesses from Friday afternoon that were unconfirmed by any other risk assets.
Friday was an inside day on the S&P. I'm looking for it to resolve lower, below the 7/14 lows of 1306.51. A breakout higher could easily target 1330.
I got a little of what I was looking for last Friday morning. There was an early morning expiration pop in the S&P, but not a lot. The OEX 590 calls nearly doubled. Ordinarily I would have sold them. This time I hedged them with an e-mini until they were "paid for" plus a little extra. I wanted to keep them just in case there was more of an upside surprise. The surprise was that it took until end-of-day to materialize. By then the calls, being out of the money, were worthless. I did trade the 585 calls for a small profit on that end-of-day spike but took them off way too soon and missed yet another 2X return. No problem. I wasn't buying puts at the days lows like some unlucky souls I witnessed. It was a great week for me, and I didn't want to do anything to mess it up.
I had a big weekend, lots of fun in the sun, and I'm taking it easy this morning until the odds stack up in my favor.
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