Apr 26 -Mid Day Update

It appears we are actually going to retest the 1150 area pre FOMC. My gut was right. After yesterdays action, I just didn’t see much more downside ahead of the FOMC and I was pretty aggressive in my adjustments and hedges to the upside. The data today was abysmal and it appears that’s all that’s needed to convince the market that Yellen can’t signal a rate rise in June. Terrible data = stocks go up. We’re back in that phase I guess.

Yesterday I bought 5 DITM calls as a hedge after I had sold them on Friday, I am looking to sell at around RUT 1149 area. I doubt we convincingly break 1150 and hold before the AAPL earnings release and FOMC meetings. Perhaps the 1110 test comes after this retest or perhaps we break out. It would be something astounding if RUT continues north of 1160 from its Feb 11 low of 940.

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