Positioning To Be A Seller

Buying SDS this morning in the pre market, taking advantage of an overnight thrust into an area I was patiently waiting for (1320-23), roughly the .618% retracement of the 1291.50 lows.

The futures could reach a bit higher, possibly into 1332, so I'm scaling in, and doing it against a mix of SPY calls which I hung on to last week plus additional SPY 131 calls which I added near the lows. Gradually increasing my negative delta.

World markets are green. The dollar looks week. Grains and softs look like they might be consolidating. And St. Louis Fed president James Bullard is on CNBC sounding quite dovish.

As ridiculous as it must have looked last week to see the chart of the "revised scenario" I posted as the market was going down hard showing a triangle before new highs, sadly it could still be a possibility even though the count looks complete. The market doesn't care about wave counts or anything else. But for now, I'm positioning as a seller for the next few days.

Also, I'll be packing for a trip on Wednesday out to Colorado. I will be bringing my office with me and working from the road.