Dislocating markets

Big day at the markets, with the major indices holding their broader, 2-3% gains across the board.  Remember when I got all bearish on silver and copper when they had just peaked and started dislocating on a daily basis?  That is, dislocating markets is a term that I created that means a market is making crazy huge daily moves, dislocating itself from the prior day’s action.  When stocks are moving up and/or down 2-3% on a near-daily-basis, that’s what I call a dislocating market.  And the point of pointing out dislocating markets is that they are often indicators of a market that is indeed trying to peak. Today’s 3% action, in that light, isn’t a bullish thing even though the bulls of course love an up market.

I’ve yet to get any of my put orders filled today, which is another indicator that today’s action isn’t quite as bullish as it might be. On wildly “bullish” days, you’d expect bullish traders to be willing to hit your bids on puts, much like I did last week with the traders who were willing to buy AAPL puts from me.  Those puts, that I’d written about that were selling for nearly $20 each are now trading at less than $15, but I’m not covering any of them yet.

It’s good to be back, hope you guys have hung in there tough while I was gone.  Stay fosuced, er focused!