The indicies are split with the $QQQ and $DIA trading above their 200-day SMAs while the $SPY and $IWM struggle to overcome theirs. That 50/50 split is more than likely going to be carried through next week as we enter option expiration. However, there are a lot of potential catalysts with economic events next week starting with the PPI and retail sales on Tuesday. Wednesday brings with it the CPI followed by the Philly Fed Manufacturing Index and weekly claims on Thursday.

With 17 +/- 1% or greater unfilled gaps over the last quarter in the SPY it’s become very difficult to swing trade and hold a position overnight. We can thank the EU for the volatility which seems to never end. I guess the few weeks that our congress spent losing our AAA credit rating while “debating” the debt ceiling looks pretty benign compared to the circus across the pond. I believe we are entering a stage in the market where higher prices will ensue as Europe is written off about the time we enter the seasonal bullishness often seen during the holidays. I have one more option cycle before the year’s end and will more than likely have my positions in next week.

I’ll be in Las Vegas next week giving a presentation on the psychology of trading and hope that you can join me. If you are going to be there please reach out to me on twitter or email to let me know so we can meet. If you are unable to attend you can watch the presentation online as it will be webcast. Enjoy the links and your weekend!

  • 18 minute primer on game theory & complex systems [TEDx]
  • Living the Carnegie way [BBC]
  • Cognitive control and individual differences in economic ultimatum decision-making [PLoSONE]
  • What triggers an Earworm – the song that’s stuck in your head [BPS]
  • Why IQ fluctuates over your lifespan [Aol]
  • the art of negotiating: an analogy, with booze [Scientopia]
  • Is good enough really good enough? [Psychology Today]
  • The neurobiology of stress: The stress response explained [SharpBrains]
  • A history of the brain [BBC]