Et tu Brute

Market Action:
The Ides of March was actually rather dull, no betrayal, no killing, just a lackluster day all around.  Thursday morning’s report on the PPI was enough to hold the market down a little.  Prior to that report the futures were very much in the positive but the 1.3% increase in the PPI for the month forced them to drop.  The opening was mostly flat, not down, but the way the futures had traded into that number, you might have thought the market would be up about 1% at the bell.

The Dow rallied starting about 15 minutes into the session and looked like it would push up to our 12,200 target but it fell about 15 points short, but still up about 50 points.  We had a moment of maybe this is the end of the rally but didn’t act on it.  About mid-day the Dow broke and moved back down to the opening levels before moving up a little into the close, up about 26.

Greenspan decided to open his mouth again, this time that high home prices are going to be a bigger problem than sub-prime mortgage issues; that news again subdued the market and after hours the traders sold off stocks somewhat.  

Opinion/Analysis:
This has been a volatile week and we are looking forward to it being Friday with a weekend coming up.  We do have the options expiration in front of us tonight which may prove to be an opportunity.  The CPI is due out in the morning and given the reaction to the PPI news on Thursday morning, a jump in the CPI could cause some more pain.  We do not expect it.  What we do expect is a heavy volume day with the quad witch going on.  There may be an opportunity for us if we can see some upside.  So far this evening the futures are still down on Greenspan’s comments.

Have a good weekend.

Dow Industrials:  12,159.68  +26.28
VIX: 16.43
HUI:  326.08
QQQQ:  42.89
QQQRR: 1.90 bid (do not own)
RYVNX:   17.63
RYAIX:  21.94
RYCWX:  37.51
TLT:  89.87
BEGBX:  13.87