How many people on this board (all 4 of you), think todays rally was an ambush laid out by the hedge funds.
I know this seems beyond possible, but, hedge fund managers are quit clever, and, when they move in unison, have the money power to do this.
What did they rally on, people like me, who were short.
Anyway, as I have said before, don't fight old mo, mo wins everytime.
The S&P downgrade was a farce. Almost every major bond investor, including nations looking for reserve currency, have rendered the market equivalent of a "dope slap" to the satrap at S&P who bullied his partners into using their stature to play politics.
The sell-off was a panic, more over sold than a prostitute at a sailors's convention.
Today was the correction but schizoid as evidenced by the wild gyrations. We are still down a bunch from a week ago. Likely 23-24 is a reasonable short term trading range given the general paranoia. Where it goes from there is conjecture, anyone's guess.
I sold some ITM puts the other day, so far so good.
I am still holding onto the puts I bought, though.
I guess you could say, I am long and short at the same time.
What a week, now the question is, how long does it last, and, if someone hic-ups, does the market sell off another 500 points.
Straddle makes a lot of sense today - challenge to find decent buy-ins (and sells) on each side. Good luck!
The entertaining part is the contrasting comments from competing talking heads who have the business objective of capturing ears and eyeballs.
Following the -20% debacle in 1987 I recall one somewhat honest pundit predicted "The market will go up or down, unless it stays the same."
I do believe it is time to add for long-term holdings, but a bite at a time - not all at once.
Words to live by.
There is still reason to believe that the market will sell at some point within the next few days, even though it is way oversold, and, by and large, earnings and guidance have been positive.
The European governments are going to have to add a balanced budget and cut spending if they want the ECB to give them money. The ECB must be run by the Tea Party. You know, those nasty people who have that devilish ability to add and subtract.
I do have this question, if they are banning short selling for some European Banks, does that not sound like what happened here before the Lehman fall, and, all that other mess?
Bit of good news, "...Banks best positioned for a weak economy and extended low interest rates include American Express(AXP_), Wells Fargo(WFC_), JPMorgan Chase(JPM_) BB&T(BBT_) and U.S. Bancorp(USB_), according to Morgan Stanley's analysts, because they have flexibility to manage net interest margins, keep costs down and return capital to shareholders in the form of dividends or share buybacks....
This must be a profit taking day, if the market sells off today, and takes BBT below 20, I will sell some more puts.