Like a teacher erasing a chalk board, stocks gave up all of their gains from yesterday and even added to their losses for the week. Concerns in Europe, this time centering around France’s AAA credit rating spooked the markets. Furthermore, Disney disappointed with their earnings yesterday after hours setting a bearish tone to the “strong corporate earnings” storyline. With the VIX and gold both skyrocketing again today, the fear trade was back on, sending the Dow to its lowest close in nearly 11 months.
With today’s the markets are now at or near fresh lows and were unable to maintain any support after yesterday. Our attention will once again turn to 1,100 on the S&P500. While we said on Monday we expected a bounce, and we got one yesterday, it was obviously very short lived. Even though that was the case, it is extremely important for traders to stay on their toes and realize the markets can bounce at any moment, and as long as 1,100 holds, there is still a level of support to trade against.
Given the recent volatility in the market it can be tough to figure out ways to make money. While many probably are familiar with us first as a penny stock website we pride ourselves on being able to trade in any type of market, especially when the penny market gets as slow as it has been recently. With that said we would encourage our members to watch this video covering an options trade we put on today and further, spend some time at the CBOU website (cboe.org) to learn more about options. Options can be a great way to take advantage of extreme market volatility like that what we’ve seen recently.
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