The market began positioning itself for post Fed volatility as it retreated to support.
Anyone not living in a cave should know that the rest of the week contains some critical economic events that will provide market direction not just for the next day or two but probably for the next several weeks.
Europe, economics and the Fed will control our fate and fundamentals like earnings and technical levels on the charts will be of secondary importance.
Sometimes the best trade is no trade at all. I believe that is true at least for Wednesday and possibly for Thursday as well but I will make that determination Wednesday night.
For tonight I am not going to add any new plays. Since market direction is going to be headline driven and probably at a high rate of speed, I feel it best to be a watcher rather than a participant. We have a market short in the IWM play already in progress and most agree the markets will be disappointed by the Fed decision. We are covered if that direction appears.
The wild card here is the ADP Employment report. If the ADP report suddenly shows an unexpected increase in jobs that could offset negative news from the Fed.
Buckle your seatbelts because it could be a bumpy ride.
James is on vacation this week.
NEW DIRECTIONAL CALL PLAYS
No New Calls Today
NEW DIRECTIONAL PUT PLAYS
No new bearish plays today