The markets are not giving our new President a very warm welcome. Stocks have been under pressure all day with very small bounces. The overwhelmingly negative economic enviornment seems to be trumping the optimism surrounding Obama's inauguration.
There is renewed concern over the solvency of not just our domestic banks, but of banks globally. That, I think, is causing the pressure in stocks and the firmness in the dollar. The indexes are looking like they are picking up negative momentum. As we approach today's buy zone, it is important at this time of day and the changes taking place to consider this level could be tomorrow's sell zone. With the vix up 7+ to 53+ today, it is worth considering selling calls as the vix should give a substantial cushion to any reversal.
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