Today is what we would call flop lag in poker. Today is exactly the response I assumed we would have had on Friday. It’s only a day late- but I did hedge both my option positions FZA and SDS by selling OTM calls- this limited my upside and also limited my rebound today. I am now net $200 on my recent short of the S&P.
One thing I am actually considering tomorrow is buying to cover my OTM SDS calls. I will take a $200 hit but I still think we are heading lower. Technically there was a lot of damage done to the S&P charts. The only thing that is going to save us from testing July lows is a low volume rally.
Obama’s speech today was a joke. America was hoping for solutions, and he comes out and blames Bush and the GOP for the mess. I agree that there is blame to go around, but we want answers not finger pointing. Again, you cant be anti-business and expect job growth. Its illogical. But hey, when there are political points to be made, politicians will make em’.
Once I think we have bottomed I am going to start a long Div-Champ portfolio coupled by long call strategies on growth stocks. Bare with me while I ride this market down.
All the best,