Weekly Recap

As we follow the market's path, are we headed towards darkness or just different scenery? Last week tells us that the market is still unsure. The week was a loser - all caused by the Fed's failed communication strategy. However. as we get a few days beyond the Tuesday meeting, is it time to rethinking the market's direction?

Friday's selling (on bad CPI inflation news) may have a silver lining. The volume was very weak and the bears didn't look committed to taking the market down. On the other hand, buyers were on strike. Next week will shake out what the month will look like.

Last week, I was contently holding stocks and options long until 2:15 PM on Tuesday, when the Fed's decision and statements caused traders to groan audibly on CNBC. I sold my GS calls as soon as possible (and they were slaughtered) and threw up some XLF puts to try to stem the bleeding.

Wednesday saw me sell off some PCP calls (for a profit) early to raise cash, and GRMN's erratic run has forced to have me admit defeat in trying to trade calls with the security. I sold all my GRMN calls and started to "get simple" with my portfolio.

Thursday's news (PPI) continued my negativity and concern for the market's direction. I sold all my calls (except a few AAPL and PCP strikes) and put about 40% of my portfolio in cash.

Friday's move would have normally had me going to 100% cash, but the selling was so weak (though efficient) that I have decided to stay put. I covered my XLF puts on Friday and stand ready for next week.

Will it be up or down? Into the light or into the dark? I will wait until Mr. Market tells me before jumping in. The trend changes have just become too difficult to read for this trader.

P.S. I did have a very short ride down with UA on Friday (bought at $45.35) before getting stopped out at $44.90. That stock was mentioned on my shopping list, but more technical damage was done there again on Friday and I will continue to watch it.