The Market Will Establish an Early Trading Range Today - Option Traders - Go Golfing!
Posted by Pete Stolcers on May 28
Yesterday, the market was able to stop the bleeding. After five down days, it posted a small gain. There is not much volume during this holiday shortened week and traders will be searching for direction.
This morning, durable goods fell by .5% in April and that was less than expected. If you strip out transportation, durable goods actually rose by 2.5%. That news gave the market a boost on the open. Oil prices were down early and that helped as well. As the morning unfolded, oil started to climb. That put pressure on the market and it is testing the downside after the first hour of trading. The advance/decline is flat and the market is likely to chop around today.
In light volume, the market can make dramatic moves. However, I don’t believe that will happen today. I expect a tight trading range to be established in the first two hours. Tomorrow, traders will have more information to sink their teeth into. GDP, initial jobless claims and crude inventories will drive prices.
By now, you should have a fair number of call credit spreads on. I would simply stay with the positions. This market is not worth trading today. It is just chopping around. If commodity stocks continue to fall hard, they will represent a great trading opportunity soon.
Be patient. 
