The SPY after hours.
I felt there was two reasons the SPY would hold up today. Options expiration or pinning that was talked about in previous blog and the Dividend Date. You would think in after hours the Price would go up because if you are short the SPY tomorrow you have to pay the 75 cent dividend to the broker. I could be wrong but I believe I have the date right. So you would expect the SPY to go up and instead it is going down. This looks to be a very bad sign if you are long. It looks so bad and I mean hopeless that I am beginning to wonder if we do not bounce upwards tomorrow. Who knows? Coming into options expiration we often have large moves because premiums are cheaper and a lot of money can be made with leverage.
I earned my wings even if I did not make the best trades today and now crossed above 27,000 and now can day trade. Now all I have to do is figure out how to fly, without falling like a rock! Good luck trading!
If you have any doubt we are in a bear market this week should of proved it. A bear market is one where you see sharp moves upward with slow steady declines.
One other thing did anyone notice where the 3 month T-bill is trading and what the credit spreads are after the Fed decision. It would seem that .79% to .47% is not such a great deal and I was wondering if the money might start to bolt in a different direction. Heads up, where it ends up I am unsure?
Edited by snowman at 09/03/11 at 07:14 AM