Bears Fueling The Market

There is a lot of put buying for a market that is up so much. Those puts will serve as fuel for a further advance if the bulls can hold.

3 comments:

Onlooker said...

I was noticing the same thing at ISE. Kind of like June 2, though that didn't end up lasting too long.

We may just be at a point where a durable bottom of some sort may be in. It's looking more like it, for sure.

Tsachy Mishal said...

While I concede that the economy is a mess usually this many people are not allowed to be right. A rally to expiration or quarter end would shake out the weak shorts and at that point I would consider the short side. But the trade is way too crowded for me right now.

Onlooker said...

Agreed. It sure feels like we should rally a bit, though I don't have confidence in going too long as surprises still may be to the downside as we go along (despite this morning's nasty short squeeze surprise to the contrary).

Mr. Market is more manic-depressive than usual these days. Wicked whip saws.