Wednesday, December 23, 2009

Bookkeeping: Trying Index Longs

While wary of holiday trading volume, I will finally attempt some index longs here as S&P 1120 seems to be holding.  The usual suspects: TNA (6% allocation), BGU (6% allocation), and SPY calls [Jan 112s] (5% allocation)

As a wary mole, I have my heads up for any reversals ... but I assume if any occur they will be taken care of by the "urgent buyer" in premarket tomorrow.

I'll give this trade about 2 S&P points to the downside since it just seems too easy to be true....and this type of trade has not worked in close to 2 months.   If however, we rally over S&P 1123-1124, I'll be adding to positions as this could be the "big one".

EDIT 3:15 PM - so far, so limp.  What a funny market this week - the only time the S&P can surge is in premarket when trading is thin and much less buying power can move the indexes to the 'correct spot'.  While there is some interesting activity in individual stocks, the indexes can't do anything once you pass 9:45 AM.  If there is no improvement I most likely will be exiting these positions and try again tomorrow.  I don't want overnight risk in case Dubai 2.0 pops up.  Tomorrow is a short market session.

EDIT 3:30 PM - sold all 3 instruments just over S&P 1020 for tiny losses.  This was not the "break out" we were looking for.  Another day where almost the entire move has been premarket and first 15 minutes of the day... let's see if Groundhog Day happens again tomorrow to make it 4 for 4, on the week.

Long all names mentioned in fund; long TNA in personal account

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