Market is strong because participants are thinking that with oil price drop Feds will not need to hike the rate, premises that started down draft and gave us about 4 % correction from 12/15/06 to 1/03/07. Since then oil was not able to recover and keep sliding hence lifting the pressure of future inflation from participants mind.
We are still a discount to Euro and JPY about 5% if $ move up or market moves up this disparity will move out and then pendulum will move in other direction.
In technical break out " which seems eminent at the time" I did my part of mistake to write a bearish call spread for which I will pay, Since I was not sure I did not went naked so my loss is limited to 60$ per contract and luckily I started with 30 Contracts only. I start small and if it goes as plan I would increase, most of the time I do not add to a losing situation.
War makes it more difficult for market to go significantly higher, although war spending it self is a stimulant for the economy, but defense $ spending create 4$ and public sector about 9.
Market still needs to discount new jolt of negative spending.
In all these views I will be trading with NERS because it does not need all that in put for trading.
All my random thought I decided to put out see what other member thinks.
If we close below 44.65 on QQQQ that will be negative for the coming week and that can increase volatility, there is 10 % chance as of this moment I bought few 45 PUTS for JAN @ 0.35 it is gambling money.
Good luck to all.
