Mid Day Trading Update – Twister
Indexes are really confusing directional traders today, pushing aggressively both ways & facilitating the ‘hard trade'. Holding a directional during this kind of environment can be detrimental to the mind as well as the bank accounts. Stocks were decisively in negative territory this morning but many have now come back into the green as the markets have gone positive during the lunch hours.
The dip buyers and bullish sentiment still linger and this means bears must continue to wait until the price action starts to support some kind of pullback in the indexes. With the lack of any kind of catalyst though, this event may not happen for a bit longer.
Green Mountain (NASDAQ: GMCR) & Tesla Motors (NASDAQ: TSLA) actually turned out to be great trades today, after they both topped their earnings estimates during the afterhours action. As far as the ‘usual suspects' we watch religiously here at Sanglucci.com, there's not much alpha to capture by going long options so the writing strategies seem to be the smarter play. The idea there is to capitalize on the choppy activity and the volatility being drained out of options on the high flyer names like Google (NASDAQ: GOOG) & Apple (NASDAQ: AAPL).
For you newbie traders out there, price action is always king. Don't let your mind try to find reasons as to why because, meanwhile, the market will just keep on ‘doing'.
Stay tuned for more updates!
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.