The collision of global markets and social mood

Thursday, October 14, 2010

The Markets Are Showing Their Tails This Morning

I'm seeing tails forming on daily charts for gold, silver, and all the major currencies. However, the S&P has yet to trade out a clean impulse move lower. It's kind of sloppy so far. A lot can change, but I think things are setting up. The VIX is showing signs of life as well.

Yesterday I bought more VXX as a partial hedge against small long positions in BGU and SSO. Today I'll be looking for a little more premium to drain from the OEX 530 weekly calls and will likely use those in the afternoon in case Bernanke gets cute Friday morning.

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