Just about everyday this past week had a violent pre-market swings, as well as regular hour dramas, all fueled by the rumors and news regarding the sovereign debt crises in Europe. Futures up hugh, only to wane significantly by the time the market opened; or vice versa. I really didn’t know what to do at all with this news driven market. But the volatility could also represent missed opportunities. Plenty of painful “what-if” hindsight thoughts.
During the first 3 days depending on which chart you looked at, the SPY prices consolidated either below the 200 day SMA (the red line in the above chart), or above the 200 day SMA (the blue line in the stockcharts.com chart). Yep, the discrepancies between the 2 charts had come back to haunt me. One chart did not have historical price adjustment due to dividend payout, the other one did. As a result, one chart suggested weakness while the other suggested strength. So I was torn and frozen and didn’t do anything other than some day trades.
Thursday was a bears’ haven — a gap down and crap day, down 2.19%. Friday was just the opposite — a gap up and rally day, up 1.69%. But I was travelling on both days!!
In the end, it was a wash. Nothing happened. But as the short term trend has been up, this “nothing happened” consolidation favors bulls. This week, *ONCE AGAIN*, we’ll be waiting for the outcome of the Euro Zone meeting. It’ll shake the market, like every single time. But each time I’d thought it was a done deal, yet there seemed always another meeting that the market hinged on, as the world played the delay game to sustain the financial house of cards.
Portfolio Value: $127,800