A Tired Market
13th December 2009
The 50 day MA held as support once again this week, but it did so on lower volume. The market has spent the last month going no where. Often times this indicates that the market is digesting its gains before making another big move. The biggest problem I see though, is that its not really telling us which direction it wants to go.
A quiet market is a good time to try an option trade that benefits from time decay. An Iron Condor or a Butterfly would fit the bill, but you may not get enough premium to make it worth while.
It looks like a lot of traders have already gone home for the holidays. It may be a good time to join them and take a break from trading the financial markets. That way we can all be fresh at the start of the New Year.
JD
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