It a wrap!

We are waiting for the Fed to say nothing. The markets were quiet like it was mid August. The pit was thin most of the day with about 50-60 locals at best.

The Naz started to pick up and the S&P couldn’t make it back into Fridays range so overall a bullish sign but it just "feels" like it wants to trade lower. Its best to sit on your hands then get chopped up trying to take a few ticks out of the market. One thing that is gnawing at me is that the Vix opened above 17.0 and has stayed there most of the day.

When the markets rally strong they become overbought. Many traders hunt for a short position thinking it has to pull back to digest the rally. However, it must be considered that the markets can “work off” that overbought condition by trading sideways. Sideways or consolidated trading in a narrow range rotating from one extreme to another can do just as much to reset the market as a break (pull back). This catches a lot of traders off guard. They don’t look for a rally until they get a pull back trying to “buy the dips” so they are not long. The Shorts plant their feet (and their pride) believing the market needs to correct. But it never does. The rally comes and the shorts are stopped out further perpetuating the rally. And so the story goes......

I’m calling it a day here. My trigger finger is itchy and that always gets me in trouble…..

Tim Mack