Tuesday report - VISION FINANCIAL MARKETS

In the end the roll over will account for at least part of the current slow down but only a small portion. For get the option expiration its year end. Everyone is “shutting down” for the year.

One thing that we will get out of the roll will be a look at how open interest went out in the S&P. During the last several rolls the open interest dropped from a high of 650k big contracts down to 350k. At the start of this roll open interest was right around 400k. As far as the days overall trade went it was “all spreads” As for the over all tone it seems the slower it gets the higher they go.


Last Monday the SPH closed down 4.40 handles, on Tuesday the SPH closed down 13.70 handles at 1090.00.
But after that Wednesday was up 5.60 handles, Thursday was up 6.40 handle, Friday was up 6 handles and yesterday was up 5.50 handles? The SPH has been crawling its way back over the last 4 trading days and is only a few handles off it contract highs for the year.
Like the market, don’t like the market, it really doesn’t matter at this point.
We have only 11 day until Christmas, 4 trading days until DEC goes off the board and only 12 trading days left on 2009.
That in it should be something to cheer about. Here is where we stand on the markets right now. The slower it gets and the later into the month we go the higher we think the S&Ps will end up.
Do we like that? Not really but in all honesty this should be the time of the year that smart traders cut back.
It doesn’t matter if they are up or down no one wants to see losses at year end.

The way it looks is the SPH is going back up but the narrow rally over the last few days is anything but inspiring. In Europe today the banks led the sell off with concerns about Greece's debts and worries over the financial health of Austria's banks. We could be in for a down day but we don’t think they will stay down for long.