QUICK THOUGHTS
The markets today were predictably dull following the long weekend. I think that things will begin picking up tomorrow, with Thursday and Friday being volatile sessions. I do expect the volatility to have a downside slant for the remainder of the week.
The only real movement in the portfolio today was in crude oil, which managed to make another move higher based on Iranian threats to close the Straight of Hormuz for the upteenth time over the past 20 or so years.
The threats are always hollow in nature. I don't expect this time to be any different. There will, of course, come a time when the threats are followed through with action. Hopefully I am not short at that point. As I like to say, this is an odds based game we are playing. Whenever I can take odds on a perceived event coming from a source that has never followed through on its threats over a period of decades, I am happy to make the play.
Not to mention the fact that directly ahead is a huge amount of resistance for oil right around the 103-104 range. That's where I plan on adding should the market move up to that range in the coming days. For the time being, I am holding onto a small position in SCO.
Italian bond auction tomorrow is what everyone will be watching. Never thought I would be typing this phrase as the event for a particular trading day without living on the Amalfi Coast and driving a Fiat...yet here I am.
The rest of the week is promising to be more interesting than today. That I can promise you.
