The market was slow today ahead of earnings numbers coming out tomorrow after the bell (CSX and INTC) and economic data on Wednesday. But, if you didn’t believe the market could breakout over the Lehman gap today, it turned out to be a pretty good bet to fade the pre-market run up and take profits as we approached the low of the overnight trading range on the ES. In my opinion, that was the trade of the day today.
I wouldn’t be surprised if we get a similar setup of staying within the overnight range provided there is no exogenous event. I would expect a little more chop with the bond market open and more bets ahead of the close on the earnings numbers and economic data (rumors get going, leaks and that kind of stuff could provide for more movement than we got today).
Today’s trades:
- Short SPY $107.94, Cover $107.45
- Cover VMW $42.81
- Added SVA $7.67
- Added VVUS $9.79
- Sold 1/3 of position in STJ $33.49
- Added BRCX $8.56
- Added YRCW $4.36