Oversold markets may become more oversold if Yellen develops foot in mouth disease in her testimony on Wednesday.
The Dow traveled 1,149 points today but closed only 12 points from where it started. The expected short squeeze did not develop even when the Dow was up +106 points at the highs. With Yellen the important headline for Wednesday and the market likely to react strongly to whatever she says we are likely to see some strong volatility.
The Asian markets that are open, China is closed for the week, are down hard again tonight and the S&P futures are down -9 points. I think we should pick our battles carefully and Wednesday is a battle where we should not participate. The market should go directional again after tomorrow. Whether up or down depends on Yellen.
No new plays today!
NEW DIRECTIONAL CALL PLAYS
No New Bullish Plays
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays