Yo, Pit Crazies,
On Monday, the sentiment was terrible going into trading … yet somehow stocks managed a 3% swing up for the best gain in several weeks.
The UN stepping in to tell central bankers to stop raising rates helped a bit.
I think they should raise rates again in November if there is no real decrease in inflation.
Some prices are going down, so at some point things should improve.
If anything, Europe is still a problem and higher rates are not going to help with natural gas supplies.
Meanwhile, Vol Man has some news …
Check it out.
Big Rally on a Lower Vol
Check out Vol Man after the big rally last week spurred on by the Bank of England. The rally we had yesterday was solid and implied vols are a bit lower than the close last Wednesday.
10-day SPY chart with IVs on the bottom
The fact that implied vols are lower with stocks just lower is generally bullish.
The worst case scenario from this weekend was a Credit Suisse wipeout, but that did not happen.
There’s no telling what the Fed talked about at their super-secret meeting yesterday, but mid-370s or higher for the SPDR S&P 500 trust (Ticker: SPY) looks promising based on the lower vols alone.
The Rundown
NitroTrader
Mark closed a Tesla Inc (Ticker: TSLA) Oct. 21 275/250/225 call fly Monday morning for a 90%+ gain. Nice audible on Friday when TSLA ran a bit but not out of the strike range.
To Your Trading Success,
AG