Look for earnings tomorrow

HD will announce tomorrow. They will probably be better than expected. The stock will probably be higher tomorrow. The problem is that there is absolutely no trade here. This would have been one of those events I normally would have gotten in front of by purchasing some calls or a call spread. In this market, I am not interested in trading this. I have very little confidence in the direction of this trade.

I was happy to see Goldman step up to the plate and announce that their top executives will not be accepting bonuses. I was furious to hear that when Vikram Pandit was asked about his bonus, he said that was up to the board. WHAT!? BE A LEADER PANDIT!!! YOU EARNED NOTHING!! YOU DESERVE NOTHING!! It is that simple. What a snake.

The action today was wishy washy. I really feel like we might get into a nasty death spiral without really knowing it. The technicals are really on the verge of breaking down. If we don't get a strong up-side move in the next couple of days, we might see a free fall in the market. It will be very ugly.

On the other hand, if we get some good up-side in the next day or so, we could get a good rally. We have retested the bottoms a couple of times and we are now at a cross roads. I am 2-1 in my ratio of calls to puts on my index ETFs. I think we go higher with some strong action. If we don't, I am covered either way. There is a ton of cash on the sidelines. When it comes back, there will be a glorious rally. Until next time, stay low risk.