Above: long-exposure nighttime shot of oil rigs off the coast of California.
Strange things happen to options and futures on fairly predictable dates. Options expiration dates, contract settlement dates…these are trading days where – and this is just my theory – some traders just want to get out of a trade by any means necessary. So it can, in theory, lead to behaviors that can’t easily be arbitraged away. Best theory I’ve had today. Continue reading Settle For Oil
The indicator (more info here) has turned red. It’s interesting to see the divergence between the S&P 500’s positive direction, and the indicator, which is staying solidly below the threshold.
When the indicator turns yellow, it means hold the course but be aware things might be getting dicey. The indicator took a significant drop over the weekend, approximately 10 points.
In case you were following it.
Which means: don’t do anything rash, but keep an eye out. Ten straight trading days below the 75 threshold and it turns red.
P.S. I haven’t posted lately, because I have had no brilliant ideas. I might get brilliant again in the future though. Or at least have an idea.