Welcome To Bizarro World

UPDATE 11:45am EDT: Welcome to Bizarro World – a place where cats mate with dogs, gravity gets turned off during trading hours, bankers get bailed out by tax payers, and the markets rally on horrid GDP announcements:

I just bulked up on a massive amounts of SPY puts. Why?

Because I can’t lose – that’s why! Well – okay – I can lose a little but there’s a clear line in the sand at 875.63 and I will dump the lot of them if we even so much touch 875.64. I got them around 873.5 – so big deal. It’s all about probabilities and a few ticks often make all the difference in the world – ask your friendly local P&F chartist.

Anyway, the blue scenario looks like it’s a goner – but final confirmation in the breach of 875.63 is what we wait for before we announce rigor mortis. In terms of upside – the Orange Scenario – there is really not that much potential in my mind and if we bust higher there will be a wall of resistance around 881 (the 23.6% fib of Primary {A}) and of course 900.

The theta burn on my May GLD puts is starting to kick into overdrive. I got those bastards probably over a month ago close to 940 and am sitting on a losing position now. As it’s FOMC day and gravity was just suspended I’ll give this another day or so but if this fucker doesn’t drop soon I will have to admit defeat and head for the hills. This is probably the last time I trade those damn GLD puts – next time I grab some YG (Gold NY Mini) and rather deal with lack of volume. Either that or it’ll have to be a GLD put spread – I think Fujisan posted about that and perhaps she could chime in on that front this Saturday? Hint hint…. 😉

Grabbing breakfast now – have alert set for 875.63 – hope I hear it if it gets triggered. Hold the fort, rats!

P.S.: Check out that drop in the VIX – it’s down about 6% – that must have hurt anyone holding options this morning.

P.P.S.: Amazing how many rats voted for a frontal lobotomy – but after the past two weeks of tape – who can blame them? 🙂

UPDATE 1:15pm EDT: Okay – we’re starting out countdown – T minus one hour to impact.

Your channel du jour. We’ve been climbing up the center line today. IF we get a breach today it’ll have to come down quite a bit for confirmation. ES VWAP is around 865, add around 5 handles to that and it’s about 87 on the Spiders – yeah, that’s about right.

Anyway, we’re getting close again and my conditional order ready, locked and loaded.

UPDATE 1:25pm EDT: My stop just got hit – this is it for the blue scenario. Yes, we might drop back from here but the Scenario Blue has officially been disqualified. Of course it’s possible that this is the peak of 5 of (A) of {2} – BUT – the bulls have melted the tape all the way to here – good chance they try their luck at 881.