The first few sessions of the year are usually a reminder that even though many traders are chomping at the bit to get back into the fray, plenty of institutional traders of size will not come back to their desks for another week or two. Volume usually remains light for at least the first week, just as we saw during the holiday trading sessions to close out last year. Generally speaking, I find it best to reserve judgment for at least a week or so regarding the overall feel of the market.
That said, I see the futures are screaming higher this morning, and the bulls are apparently off to a giddy start. I am positioned long, with no shorts, inside 12631, but I still have that large cash position until this market proves itself to me for more than an exuberant day or two. Although it is a new year, with this large opening gap higher it sure feels a lot like the latter half of 2011. To my eye, the more bullish scenario would actually to see the opening gap faded, only to see it pick up again steam this afternoon, offering better entry points to patient traders. Otherwise, my inclination is to not chase.
I will be in and out of the office today and for the rest of this week, so expect posting to be spottier than usual until the weekend.
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The correct term is “champing” at the bit. Look it up.
Bravissimo
This will be VERY short lived..
Slip sliding away… Slip sliding away e yay..
Still short? LOL
TZA is for pussies. I’ve moved to TVIX and so far so good..
Confound this action, it drives me to drink!