Let's wait and watch

After looking at possible positions this weekend and taking into consideration the downgrade of US debt by Standard and Poors, I think it is best to sit out this market on Monday and see how the market fares tomorrow.

We have just one put spread ( TIF ) at risk which is already underwater with the large drop in the market last week, but that is the only short put spread position we have to watch and it is already near the maximum exposure and even if the market drops will expose us to no additional risk in regards to that position.

I am not sure how the market will react to the S&P downgrade, but I will say this I feel better only having the one put spread open come tomorrow.

I also feel if we experience a gap down opening tomorrow, we would not be able to get any call spreads filled anyway .

Of course, there is also the possibility that this downgrade has already been priced in the downturn in the market indices last week, who really knows

In addition, NEXT weekend the September recommendations begin.

Let's watch the futures markets this evening to get an idea of what the markets are thinking, but also knowing that these futures markets can change rapidly during the night, either way.

So let's watch and wait.