The collision of global markets and social mood

Tuesday, January 8, 2013

Patience For Now

The S&P 500 failed to get below 1455.53 yesterday, keeping alive the possibility of a rising wedge to higher prices before lower ones.

At this point I'd rather wait for higher levels so that I can put on a trade. The short trade from yesterday's scenario would have been best implemented last Friday afternoon, but I was away from the screens. Yesterday's action was negative right out of the gate -- a little too fast.

There could still be a retracement lower down into the 1440s or so. Today should settle things. Either price gets below 1455.53 or it doesn't. Patience is required. While I'm waiting for the S&P to set up, I will be working on the VIX today with some calls.

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