Word to the Wise
The heightened level of price volatility, political uncertainty and technical cross-currents has made for a very tense and trying week. U.S. equity indices rallied strongly into the Labor Day holiday as expected, and like clockwork, topped early in the trading session of Sept. 1. From the peak reading on Thursday morning to the open trades on Tuesday, Sept. 6, the SPDR S&P 500 ETF Trust (SPY) plunged over 7%. In Germany, the decline was even steeper, as the DAX was clocked for 11% during a similar period.
It seems almost futile, and foolish, to try to forecast market movements of more than a few days in such an environment. Yesterday morning at 2:00 a.m. EDT, gold fetched over $1,920 an ounce. My suggestion for a "chicken long" equity surrogate via shorting the gold market appeared poor at best and awful at worst. But as of 10:30 a.m. EDT, it is clearly in the black, especially with option volatility soaring and my expression of the trade made with long put positions....755 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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