The most important part though might have been this....
"However today I will say that this is one of those days in which things look muddy, we have VERY clear signals like before the IWM breakout and before the QQQ breakout where we know what to expect and how to play it, then there are brief moments in which the market gets muddy in the short term (mostly short term) and it is in those moments that I believe the market is not operating so much on forward planning, but is truly worried about a fundamental event that the market has no way to discount.
For instance, Boehner's Plan "B" vote in the House which I believe is scheduled for today after market, although I've seen conflicting reports.
No matter how much inside information Wall Street has, they just can't poll all the members of Congress and find out how this vote will go, how Obama may react to it, how the Senate may react to it (although that seems much more certain) and whether Boehner can keep his own party on the same page-remember the Tea Party is very independent from "Republicans" on certain matters and this is one of them.
I can't tell you what the market may be worried about, but the muddiness I'm seeing does seem to reflect some worry about a fundamental event that they can't discount because it hasn't occurred yet and they don't have inside information to know how it will turn out."
In the end, this is one of those rare days in which the market truly didn't know and when it found out Boehner couldn't keep his party together, it reacted violently.
Tomorrow is Quadruple Witching, typical Wall Street writes options, retail buys them. I can imagine there's going to be a lot of volatility as Wall Street isn't going to want to take a loss on those options they wrote being this far away from the pin. This could be a great little opportunity for us though.
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