Bulls Setting-Up Market for Sell-the-News Event
I think the bulls are squeezing the shorts here to set things up for a big sell-the-news event tomorrow or Monday. Maybe the BLS will discover even more newly-created jobs in the financial and construction industries tomorrow, or maybe we will get another iPhone blow-off peak on Monday just like last year.
In any case, I have used today’s strength to add to my short positions with more SKF, QID, and a few SPY puts. I have a little bit of cash left which I will deploy into any blow-off peak in the next two days to complete my all-in-double-short position. If we get a gap-up open on a “good” jobs report tomorrow morning, I will sell into it.
June 5th, 2008 at 4:02 pm
Hi Matt,
don’t fully understand your last sentence. Will you sell your short ETFs on a “good” job report? In the last but one sentence I thought you would buy more of that stuff in this case. Slightly confused. Please clear me up, mite.
June 5th, 2008 at 4:23 pm
Dressguard,
By “sell”, I mean buy short ETF’s. “Sell” can mean all kinds of things such as selling long positions, buying puts, selling calls, buying short ETF’s, selling long ETF’s, etc. If it looks like there is an outburst of buying from over-enthusiastic, wet-behind-the-ears traders tomorrow morning, I will sell to them since such an event usually marks a short-term top.
Matt
June 5th, 2008 at 4:26 pm
Thanks. Now I got it.
June 8th, 2008 at 11:00 am
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