(10-20-14) There has been record market volatility this past week, the total range of volatility being 747 points in the Dow. This has created tremendous trading opportunities and it was an easy week to trade, particularly for the shorts like myself. All you had to do is keep shorting the December Spoos every time they got back up into the 1880s or so.
As Investopedia explains, Spoo is “a slang term for an S&P 500 contract that trades on the Chicago Mercantile Exchange (CME)… It comes from the symbol for the September contract: ‘SPU’… Trading a Spoo is a bet on where the S&P 500 index will be at some point in the future..."
In other words, we’re still trapped in range-bound trading which is the enemy of the CLPs (Colored Light People, a/k/a unsophisticated traders who rely on financial media shills or cockamamie charts and graph advisory services).
This coming week will be another week of increased volatility because there will be a lot of quarterly corporate earnings reports coming out.