Mid Day Trading Update – STOP TRADING!
The bullish sentiment from yesterday laid the foundation for some of the buying activity during the morning session. Unfortunately, the choppy environment we’re currently in doesn’t lend itself to any lengthy follow through. After the Consumer Sentiment figures brought us to fresh highs, the markets took a turn for the worst and went back into negative territory. Subsequently this trapped many long biased traders from the overnight and the morning bull run. This pattern has been the norm as of late, and both sides of the trade are getting molested day in and day out. The best way to protect yourself against this type of environment, is to simply sit out!
Futures are now flat more or less and if you take a look across all your major sectors you’ll see mostly red but for a few sporadic shades of green. With the low volatility and decreased average trading ranges, options are also significantly cheaper. This means that finding solid premium to write against has even become quite difficult.
LinkedIN (NYSE: LNKD) has been the significant move of the day, after ITG research firm upped their Q2 earnings estimates. The stock almost hit $180 this morning and has managed to keep most of her gains despite the drop out on the indexes.
I would recommend bailing on the second half of today’s trading session and starting your weekend early! Make sure to catch the recording of our last informative webinar on adjusting strategies for the Summertime.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.