Sunday, December 18th, 2016

Market Bail out

This has been a tumbling week of uncertainty. Index option trading and all stock trading should be handled with caution. Congressional hearings and President’s scary message about how the economy will fall apart is not a good sign of times. Markets are collective souls of public and they are not at ease. However, today the market reacted to the upside 200 points based on hope and anxiety. But later in the day a White House meeting between big wigs of Washington and Congress leadership did not produce a cohesive plan and the largest economic bail out in the history of our nation since Great depression seems headed to a failure. Fed Chairman and Treasury secretary sped to Capitol Hill trying to save the package. The news seem dismal and somewhat hopeless. But who knows what tomorrow brings?


On the other hand, financial demise of Washington Mutual Bank which will be seized by FDIC and its assets sold to JP Morgan chase makes it a scary backdrop. This the largest US bank failure to date in the history, First Indy mac and now WAMU.  Washington Mutual’s shot gun wedding to JP Morgan by FDIC is a bank failure nonetheless.

Trading climate and sentiment is not what one would call right conditions to trade. Trading is not like office work, you have to do it every day. We are standing on the sidelines in Cash and watching the events.This means if things do not turn out to be as rosy, we are safe, and let the markets drop 500 points. Setting up IRON CONDORS or BULL PUT SPREADS on NDX and RUT  and index options trading can be hazardous to your accounts.

Many fly by night services and careless operators have to churn out trades so they will post trades and wouldn’t care if you sink or swim. Therefore, no matter how eager we are, we are in unknown waters and a little bit of patience will be amply rewarded.

So stay tuned…. right here.. there will be plenty of time to make money this month or next. I know

Comments

3 Responses to “Market Bail out”
  1. Nick Beardshaw says:

    Yes it seems the piper gets paid by the song. Crooks get a deal from Congress.

  2. Jorbidok says:

    interesting, i’ll be back later

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  1. […] that was not enough the very same executives who lead the financial collapse rewarded themselves with huge bonuses in the tune of $145 billion in 2009 up 6% from 2008. […]



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