Wednesday, August 28, 2013

Trades for WED August 28, 2013

The drop in cash indices yesterday were almost entirely due to hedgies selling future contracts on indices.  Major indices are either at or very near significant supports.  Chances are good that we bounce here, maybe a few more points lower.

If war breaks out (very doubtful imo, maybe some token bombing at the most) and oil spikes, we can then forget about taper.  If no war, indices surely rally on the back of short covering of those future contracts sold short yesterday.  Either way it's a win win for bulls.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change N without notice.