The S&P is looking very toppy

Its interesting how all the news is absolutely great and the markets are not reacting so well to it.

Great earning from some of the bell weathers and blow out consumer confidence.. and the ES is only up a fraction.

Tells me the market is top heavy. The dow should be up atleast 100 with all this great news.



--MIKE
 
Waggie, can you explain how a strengthening dollar would be helping the equity markets right now?

It looked like the markets were led up from late December up to now by the weakening dollar. The markets seemed to be adjusting themselves to keep up roughly the same value.

From low to high between Dec 1 to the Jan 9 top in the Euro currency futures, there was a 7% gain in the Euro. During the same period the low-high gain in the S&P 500 was 6.3%. Point being that the S&P was merely moving sideways with respect to the Euro and other currencies. Perhaps there is no correlation, but it sure seems like there was.

Now that the dollar is starting to strengthen, commodities are weakening. If the trend I identified continues, then you would have to expect to markets to start rolling over.
 
Quote from James Stock:

Again, "a small finite credit in exchange for infinite risk" is according to you. I disagree.

Quote from Ig0r:

"Wow, that's gotta be the worst way to play a top, am I wrong?"

Quote from Vehn:

"Your right. low reward hi risk way to play a top."

Quote from Riskarb:

"Uh huh... small, finite credit in exchange for infinite risk. I suggest you trade them to the limit of your account."

Quote from Hello Dollars:

Here, I'll try to expain the concept in a manner that should be more comprehensible to you. Writing naked calls provides a limited reward with unlimited risk in the same way that you have limited intelligence with an unlimited capacity to irritate. Capiche?

:eek:
 
Quote from waggie945:

Quote from James Stock:

Again, "a small finite credit in exchange for infinite risk" is according to you. I disagree.

Quote from Ig0r:

"Wow, that's gotta be the worst way to play a top, am I wrong?"

Quote from Vehn:

"Your right. low reward hi risk way to play a top."

Quote from Riskarb:

"Uh huh... small, finite credit in exchange for infinite risk. I suggest you trade them to the limit of your account."

Quote from Hello Dollars:

Here, I'll try to expain the concept in a manner that should be more comprehensible to you. Writing naked calls provides a limited reward with unlimited risk in the same way that you have limited intelligence with an unlimited capacity to irritate. Capiche?

:eek:
More...

Quote from James Stock:

http://www.elitetrader.com/vb/showthread.php?postid=407927#post407927

James understanding of risk/options gave him a $20,000 profit in a week. James understanding of nolan-wiggle-sam says: take your lithium please!
 
It's getting toppy though I don't believe this anywhere near the end or a year high. Short term (2 month) high 1150ish, Short term correction 1100ish looks realistic.

Then again I trade off the 1 min, so this is all trivial.
 
or whatever your name is today. You have never produced any SCREENSHOTS of your positions, like Riskarb did the other day, so most of us on this website do not think that you are credible whatsover.

Short 1,000 Jan. 1140 Calls naked totally unhedged and 5 points from the strike the day before expiration?

Yeah, right buddy!
That sounds like a TOTAL UNDERSTANDING OF RISK to me!
Dream on . . .

When you produce a screenshot of your options positions, perhaps people on ET will start to believe you. Instead, you have produced nothing. [b[ZERO! aside from a lot of hot air.

Now it's time to go back to school and learn some reading and writing and arithmetic. Recess is over!

:D
 
My point is that this THREAD should have never been in this Forum in the first place.

It deserves to be in Chit-Chat, where all Paper Trading and Pissing-Matches belong!

:)
 
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