And the market reacts! Wow! I thought about going long SPY calls yesterday to get in on a possible relief rally today – and boy do I wish I’d have done it! After the minutes from the Fed meetings came out today, the market spiked up over two hundred points on the Dow. I was automatically closed out of my NBR trade for $1.80 Credit in the papermoney account as a GTC order from a week ago got filled (details in the portfolio). I’m going to hold a bit longer in my personal account, and had I been paying more attention I’d have canceled the GTC order in the papermoney account.

Today we saw a huge reaction due to comments from the Fed and I expect that this reaction will continue through tomorrow. We have been heavily oversold and I think we will have a multi-day relief rally that should bring the indices back up a bit. As a result, I’m expecting my NBR position to hold up nicely as well as all of the condors that are out in the paper money account.

It appears that Bernanke and Co. are not sure what they will do at the next meeting, and we may be at the end of the cycle. The Fed didn’t provide enough information to make a clear call, but it was enough to let the markets breath again. I’ll continue to monitor the positions and post updates as needed. Enjoy your 4th of July!

Categories: Options Trading