Break Failure
3rd August 2008
The market tried to break out on both sides of its current consolidation and failed to do either. The stock market finished this week almost exactly where it ended last week. We could not have asked for a better finish to the week for the Iron Condor we suggested last week. That being said, both sides of the trade looked like they could have been in trouble at times during the middle of the week. An active trader with good timing could have bought back both sides (at different times) for a small profit, whereas those planning to hold the trade until expiration to capture the premium are still looking food. Unless some big news hits the wires in the next couple of weeks, I expect the market to continue in this trading range for a while.
JD