Editors Note:

Monday's 539-point reversal was a trade tantrum. The Dow spiked to 26,155 at the open then reversed to hit 25,611 at the lows for a 539 point range. There were two factors in play. The first was the opening spike on the S&P to 2,816 and complete rejection at that level. The second was analysts talking down the potential China agreement as weak and potential problems that could prevent it completely. Traders ran for the exits as the bears jumped on the shorting opportunity at strong resistance.

Tuesday's lackluster market is was caused by worry over that agreement. The date now has slipped to "late March" or the "end of the month." The longer the delay the less likely a meaningful deal will be completed. The market is sensing this, and cautious investors are starting to take profits. There is also the seasonal trend of flat markets in early March.

 

New positions are only added on Wednesday and Saturday except in special circumstances.


NEW DIRECTIONAL CALL PLAYS

No New Bullish Plays


NEW DIRECTIONAL PUT PLAYS

No New Bearish Plays