The markets took another turn lower on Wednesday with the Dow losing -520 points. Not exactly the environment for premium sellers.
The markets returned to support at the close and in theory they should rebound on Thursday after what could be called a successful test. However, with the Dow moving in 400-600 point ranges every day I am very hesitant to launch any plays tonight. There is no rush to race into the market. Even if we do get a bounce on Thursday there is no assurance it won't reverse like we saw from Tuesday's bounce.
While I think the market sell off is about over I still believe we should wait until we see some positive confirmation before we venture back into the premium selling mode. Once a real rebound begins we should have a decent uptrend given the extreme oversold conditions. We just need some relief in the economic and geopolitical news and have somebody say something positive about the banks. Is that too much to ask?
No plays tonight for obvious reasons.