Prepared by the good people at Random Walk, LLC. (and Scott)
Great Morning !
Closing Prices From Yesterday
Today’s Number(s)
Yesterday and Today
Yesterday
Yesterday was almost the first day in 3 weeks where the markets looked like they wanted to move. The Dow was up as higher as 17,735.71, or 88 points at its highs. At the end of the day the market closed up only 40 points and sort of fizzled out again.
TODAY
Was yesterday’s move up 88 points at one point the start of the next move, or was it a fluke? To tell you the truth I have no idea. I voice my opinion when I see action that looks familiar from some other point in time since 1985/86. At other times the action doesn’t seem to make any sense.
What I do know is that the market is in the largest bull market ever ā ever. I mean ever. We have gone up almost 11,000 points from the 2008-2009 lows. Bull markets don’t end until rates go up or the economy goes into a nose dive. We are likely stagnant right now as people fear our economy being dragged down by all the stinkers around the world ā Japan, India, Russia, etc.
Once we get some news that our economy is not being affected by those other countries, which is shouldn’t if you know how bad our trade imbalances are, then we can go higher. We can go higher UNTIL rates start to go higher next summer. But nothing is a straight line no matter how strong the trend, so we are probably due for a small pullback as well. Hence the confusion about tomorrow.
We are due for one downturn about concerns about Black Friday not going well. The media is just starting is annual holiday tradition of crapping on companies. These people in the media would claim Mother Teresa was in the Calcutta game for the Nobel prize only. But it does work every year, so don’t judge, just capitalize on it. The funny thing is I am sure they are toooooo stupid to buy some puts before they send the markets down 1-2%.
JELLY ROLLS TONIGHT
A couple of weeks ago (Halloween) I introduced/refreshed people’s minds about the Jelly Roll. I stated that I wanted it introduced because we will be doing one on November expiration (this Friday).
Tonight we will go into more details of the Jelly Roll and place an example in Thursday. Friday after the open we will manage it. Fun, Fun, Fun.
