Dow Diamonds Trade Canceled
Dear Volatility Trader Member,
The prices I’d hoped to achieve for the Dow Diamonds straddle I discussed in yesterday evening’s alert were not attainable this morning. Thus, we will not implement the position prior to expiration. It’s important to not chase a trade if the prices aren’t right.
It may be just as well though, because we’re going to have our hands full this afternoon with the FOMC announcement at 2:15 EST.
As of 12:30 PM, all major indices were trading in the red, as nervous bulls protect profits before the decision on interest rates. And given that Goldman Sachs reported great numbers today – and the stock is down – our conclusion is that buying momentum may finally be stalling.
Given that we have four positions expiring this Friday, I will be sending another alert after the FOMC announcement this afternoon, with further guidance.
Exit is everything,
Mark Whistler
