Morning Update: February 27, 2014

RandomWalkTrading.com

1–(855)–RWT-0008

Thursday February 27, 2014

Condors, Iron Condors, Iron Cockroaches and Unbalanced Condors all included!

The Dow closed up 18.75 points at 16,198.41

Again . . . a late day sell-off took the Dow from the highs of 16,252.35 to it’s close. The market has not closed near its highs in 1 week. Will today be different?

AAPL closed down 4.71 at 517.35.

The stock is still losing an average of $5 per day since it was above 550. Yesterday’s selling was due to rumors that the new iPhone 6 has delays but will include Sapphire. 

The VIX closed up 0.68 at 14.35 despite a dull day and an up one at that. The market makers have actually been right 3 times in a row when taking vol higher on an up day, as the market got hit the next day. This would lead me to believe that today is an up day as they are almost never right about vol. 

The TLT closed up 0.57 at 107.92.

GLD = closed down 1.10 at 128.11

SLV = closed down 0.60 at 20.42

Tesla closed up $5.00 at 253.00. The stock had been as high as 265 before backing off. This has all the earmarks of a HUGE short squeeze. More up tomorrow and then the rug gets pulled out? This is as speculative, if not more so, than the 3D printers and Bitcoin.

$31.1 billion market cap now. Yesterday was $30.45. The week before….27. 

Yesterday

Another day of going up, then falling off near the close. The interesting thing is traders brought volatility higher (VIX=14.35) despite the markets being up and quiet. Perhaps they are concerned about today’s initial claims numbers. 

Today

Two important numbers and Yellen testifies in the Senate today (10am eastern)

Two important numbers are out today – initial claims and durable goods. Since the Polar Vortex has had a part in poor retail sales releases and Obamacare has had its hand in poor unemployment numbers (2.5 million people are being laid off because of the Non-affordable Healthcare Act), people are expecting both numbers to be weak. If things are as expected we will likely move a lot higher. If just a little worse I suspect we will have a day like we have been having for the last 2 weeks. If surprising to even the most pessimistic individuals we could get huge selling response as all the negative numbers that have been ignore finally get looked at.

Of even more importance is what Yellen says in front of the Senate today. This is the day we could break out of the doldrums of 30 point Dow moves. 

New POT people. Keep in mind that new people are always lost for a while. You are coming to a movie that has been going on for a while, so it will take a few days to catch up to the plot and characters.

POT people. TSLA worked out nicely. We have 1 week left and the stock is only $5 away from our long spread. I will clean this up tomorrow.  

Attorney Stuff

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