This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Who Is Steering This Ship?

Stocks in this article: SPY GLD SLV TLT

Uncertainty abounds once again. The 11-letter word has become the new four-letter word for the markets. With every economic report, "breaking news" flash, Federal Reserve Governor remark and 22-hour speech from the Senate floor the markets seem to dance around like Richard Simmons circa the 1997 classic "Sweatin' to the Oldies".

Since the Fed announcement on Sept. 18, we have seen the S&P 500 December Futures contract retrace its steps for five consecutive trading days since hitting that 1727 level, now trading at 1690. The metals and currency futures have been even more erratic, with the December Gold Futures contract falling over 4% in four days, breaking below the 1310 level on Tuesday, only to trade higher by over 1% today at 1336. The EUR/USD December contract traded lower for four consecutive trading days, hitting a low of 1.3467, and then popping to the upside today touching a high of 1.3537

The truth of the matter is, we should be accustomed to this so-called "dancing", as we have lived under a cloud of uncertainty since August 2007. If anything, the moves that we have experienced since last Wednesday pale in comparison to moves that we have seen in other times of uncertainty. Remember when the S&P 500 traded as high as 1344 in late July 2011, only to hit 1122 two weeks later? That's a drop of 16.5%. Do you remember what event was the catalyst behind that drop? Oh yeah...a debt ceiling debate.

Keeping in mind that history often repeats itself, I consider the moves that the market has had over the past five days as the calm before the storm. We are simply in a little bit of choppy water right now. Whether or not this storm hits us head on depends on Congress' ability to steer the ship, and I don't know about you but my faith in them acting in time is running thin. With that said, I am strapping on my life jacket and looking to protect my portfolio with options. As I often say, "failing to plan is planning to fail". Do not let the market catch you by surprise.

Travis McGhee


OptionsProfits can be followed on Twitter at

FuturesANIMAL can be followed on Twitter at FuturesANIMAL

Travis can be followed on Twitter at

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,659.47 +302.60 1.74%
S&P 500 2,048.46 +35.57 1.77%
NASDAQ 4,731.8750 +87.5630 1.89%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters