June 3rd Watchlist
First trading day of June is now upon us folks and the markets are gaping a bit higher from Friday's doom & gloom session. In Japan, the Nikkei markets dropped out yet another 3.7% overnight, stimulating concerns that the global market sell-off might not be finished.
We have economic data on tap for 10 AM. ISM Manufacturing Index & Construction Spending figures will be released so be sure to watch investor reaction on the S&P.
Most stocks are in positive territory this morning and it almost seems like investors forgot about that blood red afternoon to close out last week. In any toppy kind of environment though, smart money must continue to pull people in long while at the same time slowly yanking the rug out underneath them. Often times this is one of the most difficult markets to trade because directional trades can not be held for too long. Indexes turn to chop and most of the money goes into the hands of the options writers.
For the first few weeks of the month, I plan to also employ a similar strategy and stay on the sell side of these options versus looking for the big alpha moves.
GOOD MORNING YOUNG WORLD!