Dog Day Friday, page-7

SPI200 Commentary

Follow or Fade!

SPI had a weaker session yesterday led by the miners. This sent the XJO under the 5550 level and thus back into the range again. Data overnight was good for the US but didnt bring out the buyers. We have GDP and Yellen tonight so I think the SPI will be quiet today as I think most aussie traders will be taking risk off for the weekend. I have a feeling that there is more of a chance that Yellen will disappoint the markets and thus cause it to pull back, so with implied volatility so low I think buying some puts is prudent. We should see a bit of action early on the SPI as anyone exercised or assigned will have to trade this morning but I think once that is done the SPI will settle into a range and wait and see mode. For todays trading I will be looking to sell around 5535 and buy around 5500