Heading for the Hills
You guys all know what’s up – the futures that is. I personally will take a huge loss today as I still have over 30 positions open which will get practically killed in the first minute of trading. The market is hugely oversold already but that won’t keep it from pushing up in my mind. After much trepidation (and surprisingly sound sleep) I decided to ‘head for the hills’, meaning close out all my puts and probably load up on some index calls (yikes – the horror!).
There is a possibility that we push up and then drop but quite frankly, that’s what I thought would happen during yesterday’s rally. All worldwide markets made record gains overnight and I expect a huge bounce today. The TNX is at 37.75% 37.92% right now – 3.25% jump – that is HUGE. Also, the Yen is starting to drop right now – another bad omen. Either way you turn it, today will be a tough day for the bears. I recommend to sit things out if you are in the enviable position to sit in cash right now.
UPDATE: I just took a major haircut – courtesy of the PPT changing the rules mid-game – AGAIN. Well, it seems they might have just broken the equity markets today – take a look:
Obviously, nobody in their right mind is going to buy this option. And admittedly, today is a unique day and I don’t expect to see this past today. However, this sets a signal and I think many people will just walk away at this point and not return to the equity markets for a long time. As the (slightly modified) expression goes: You can screw some of the people sometime, but you can’t screw all the people all the time.