Markets spiked lower on open and then rallied up big time off those lows, eventually closing in between the highs and lows. $SPX closed right under Resistance line ( March and August lows ) and that clearly points to Bearish undertones in market internals. Rally from last Tuesday bottom is on reducing volumes and $VIX is perched right above the top of the wedge line ( August and November highs ). It could spike higher on adverse NON FARM payroll numbers tomorrow morning at 8 30 AM EST.
We have closed our IACI open trade # 7. In addition we opened and closed our trade # 8 in RIMM as detailed hereunder:
2008 Project MERCEDES .. TRADE # 7: IACI
Jan 29, 2008 09:31:07 IACI Buy Feb 25 Call $ 1.50 .. 2 Contracts
Jan 31, 2008 14:47:47 IACI Sell Feb 25 Call $ 1.60 .. 2 Contracts
Time: 2 Days
Return: 6.67 % or $20.00
( barely enough to cover the commissions but positive none the less )
2008 Project MERCEDES .. TRADE # 8: RIMM
Jan 31, 2008 11:00:27 RIMM Buy Mar 100 Call $ 4.75 .. 2 Contracts
Jan 31, 2008 15:48:12 RIMM Sell Mar 100 Call $ 5.85 .. 2 Contracts
Time: 4 Hrs 48 Minutes
Return: 23.16 % or $220.00
Account Value: $ 6564.00
Non Farm Payroll number every month is "forex" market mover and sets the tone for coming month currency markets and absolutely impacts the stock markets as well. Fed would have loved to see these numbers before the 50 basis cut yesterday.
We are flat in markets ( no open positions ) before the NFP numbers.
Enjoy the ride along.
Harry
