Our thoughts on interesting observations, where we cannot do a full analysis.
Great call by Scott Rothbort. His volatility spike observation last night gave his readers a good entry point for the market. If you do not have his blog on your RSS reader (as we do) it is time to add it.
Roger Nussbaum highlights a new CBOE benchmark, probably leading to a tradable index. Selling naked puts was a factor in the 1987 crash, as I wrote on RealMoney (subscription required and worth it for active traders) today. There is a good return if the trade is done in appropriate size, but those doing the trade–institutions, market makers, and even individual investors– got very overconfident in 1987. Non-professionals should be very careful in determining appropriate size on this one. More on this topic at CXO Advisory.
Muckdog captures the Fed preview in his typical fashion. Since he objects to "level headed" we shall just say it always seems to reflect what an intelligent observer might parse from a lot of information. His presentation is stylishly superior to ours (sometimes criticized as pedantic) and includes useful search optimization terms that we lack. Check out his post to verify his superior presentation.
Dr. Brett looks at the problem of "chasing" stocks that you like, where you missed the entry. We suspect that many face this problem right now, and he provides some useful guidelines. We have discussed this in the past with some stocks that make gap moves after decline, especially Apple Computer, Inc. (AAPL).
Meanwhile, we all await what the Fed says about inflation and the economy.