The collision of global markets and social mood

Thursday, February 24, 2011

Late Post Today

Totally forgot to post this morning. That hasn't happened since I decided to post each day that I'm trading. As a result, I wondered why I felt strangely different. Most likely because I hadn't written my thoughts down before working, something this blog has been great at helping me do each day.

My game plan for today was to trim my SDS position and hedge the remainder with calls. My read on the S&P is that we were in a b-wave which might or might not lead to a slight new low. I sold half of my remaining SDS and then started buying calls just before noon. Roughly at breakeven right now (12:40 pm EST). OEX 585 calls are not yet priced to my liking (below $2) but they could be soon on any further weakness.

I'm anticipating a bounce to roughly 1315 on the futures. Any acceleration below 1295 and I'll be very angry about selling that SDS. I'd like to add to the position whenever we get overbought again.

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