Doesn't Mean Anything To Me

Dow 10k, big deal right? Maybe it depends on how you look at it. Humans love round numbers, media and the press feed off of it, but for traders it doesn't mean anything. And if it was to mean something what would it be, more buying or time to take profits? Its the old chicken and egg scenario, which one comes first. Below on the chart you will see a red line indicating 10k, now the argument is that 10k could be a pivot point for the market. It could be, the thing is how are the traders and investors going to react to this level? My bet is on profit taking, then a slight pullback with continued upside till year end.

Trade Update

The Nov/Dec 610 put calendar I bought on the $RUT is still in very good shape. I was expecting more of a volatility pop, but instead its been kind of quit and sideways. New Nov. trades have already started to get filled. I have been setting credit spreads on the $SPX below $950 and on the $RUT below $520. Next week I will start setting debit spreads and cash secured puts.