Print Version The Big Picture

Perception vs. Reality: What Are Stocks Discounting?

by David Moenning

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  S&P 500 Last 12 Months
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Comments

Great recap, so which way do you think Monday will go? I think Friday's partial rebound was basically due to short covering ahead of the weekend and also due to delta hedging of option positions before expiry. I bought some June call spreads on the SDS at the close and am going to sell them Monday at a gain or loss once the direction becomes clear.

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