Mid Day Trading Update – Is The Reversal Coming?
As expected, we're looking at yet another chop session as we get into the lunchtime hours. The indexes were riding along in negative territory for most of the morning but we've since gone back into positive territory after comments were released concerning future FED policy. FOMC minutes will be released tomorrow and many traders are hoping that will be catalyst to start a possible reversal in the current bullish trend.
The Tech/Internet High Flyers have been trading more on the weak side today, with Netflix (NASDAQ: NFLX), Apple (NASDAQ: AAPL), Priceline (NASDAQ: PCLN) and Google (NASDAQ: GOOG) all trading lower on the day. Financials were pretty bullish off the open but gave much of their gains back. JP Morgan is the strongest right now while Bank of America (NYSE: BAC) can't catch a bid over $13.60.
Today was the temporary top though for Priceline's outrageous trend higher for the past month. The $850 calls this morning were going for $9 plus and premiums for this option as well as all the other OTM weekly calls have dwindled considerably.
My assessment on the indexes thus far is that we're still not ready for that reversal and bears would be wise to keep their positions on the lighter side. In reality, the markets could just consolidate up here at the highs and we could keep going higher and higher.
Stay tuned for more updates!
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