Following the game plan outlined this morning, with the S&P 500 now over 1070 I am using that as my pivot point and have some modest long index positions on (TNA ETF, SPY calls) and will use 1068ish as my stop out level. This is the 'top half' of the mega range, so as long if 1070 holds there is 30 points of clear area to move upward. You can clearly see the dominance of automated trades on days like today when a key moving average is cleared... the market goes vertical immediately after. We added nearly 5 S&P points in a handful of minutes once 1070 was breached.
In a perfect world we get somewhere into the 1090s on the S&P 500, where I will dump these positions and refocus on the short side. Heck with the way they are throwing 3% rallies around lately, that could be this afternoon ;)
I am just not that interested in buying long individual positions here, because each time the market is crunched, all the babies are thrown out with bathwater and it has become useless buying individual equities.
EDIT 11:30 AM - oops I forgot something!
Wednesday, June 9, 2010
Bookkeeping: Put on Some Modest Long Index Positions
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows