EOT Position Update – February 17, 2016
Market Snapshot
It’s been another crazy and unpredictable week for stocks.
Right now, bulls are trying to defend the October 2014 low around 1,815 on the S&P 500.
The initial bounce and follow up from the trend following computers has led to a 6.5% surge the last four trading days. But the large cap index remains mired in a downtrend and still 7% lower than it was to start the year.
The latest reading on industrial production is helping spur the market higher today. Industrial production surged 0.9% in January. But that follows a downward revision to the December data.
The two main drivers of the uptick were utilities and cars. In other words, heaters were working harder as temperatures fell and consumers took advantage of falling interest rates to buy expensive cars on longer term loans.
The bottom line is emotions are still driving this market. Fear is still in control but the bulls on the sidelines are looking for an opportunity to jump back into the market.
But it’s hard to believe they can do so with any confidence with guys like Bernie Sanders and Donald Trump looking like the frontrunners to become the next US President… neither of them bode well for US stocks.
Position Updates
Just a quick note: Remember, we won’t update every open position every week. We try to focus on the positions that have some significant news or price movement.
STMP February 19th 2016 $85 Puts
STMP moved their earnings report to February 25th and killed the opportunity to play the earnings announcement with February options. Sell this option now.
Category: EOT Update
