There's a fight going on right now between the bulls and the bears. No one is going to win in the short term because there is not enough market data or any world events to say the market is going to go down. On the other side, there is not enough data to say that it will go up.
The middle and lower class are not making enough money to sustain retail earnings and the banks aren't lending like before allowing them to buy things on credit. The engine of the economy has stalled and the only thing to restart it is to increase wages for all workers and to open lending opportunities for lower income earners.
As for the short-term market direction, after the big drop we had this week we have recovered already and it will probably make it to 206 on the S&P. However because of the tension in the market and the trigger happy bulls and bears when we reach around 206 the market will be smacked back down to around 203.
As most people know the market climbs slowly but falls down fast. Generally, I'm bearish because we are overbought at these levels. If there is a big swing to the upside I'll sell calls and buy puts. Conversely, after a big swing to the downside I'll sell puts and buy calls.
बहुत अच्छा !
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