This is a VERY weak bounce. Stocks should be up much more with oil down this far. So, at 10:10am, I added to my TWM and QID positions, and bought some August $45 QQQQ puts.
UPDATE: At 10:45am I took profits on my July XLF puts. I made a 25% return in two trading days, so that is acceptable. With expiration only two weeks away, I want to close out my July puts and re-mount with August puts. So, this does not mean that I am bullish on XLF! I will be more than happy to short XLF again if it is able to bounce.
UPDATE: At 11:47am I added another tranche of the QQQQ puts that I bought earlier. I am now “all in” and leveraged short with SDS, QID, TWM, July SPY puts, and August QQQQ puts. I also have a tiny number of USO calls which I am taking a beating on.
UPDATE: At 2:38pm I took profits on the SPY puts that I bought last week. I made an 84% return in a couple of days, so that seems about right.
What a wonderful day of trading this was. If only the market would be so crazy every day, I could become the world’s first trillionaire in 1 year instead of the 3 that I have penciled in on my calendar!
Hello Matt – You continue to make excellent predictions… Question though? What in the heck is holding the Qs up? I know AAPL was up today which floated them some, but apparently Tech is the last sector that they are going to drop. DIA, SPY(intraday today) are both down below March lows now. MDY, IWM dropping like a rock. But not the Qs… Not even oversold on the Daily RSI. I’m thinking maybe we do just slowly grind down now unless super bad news surfaces. But then on the other hand, earnings may make the markets chop sideways to down until August. I dunno…
Thanks again for a great blog,
visuall
Hi visuall,
I think that tech is holding up because it may have better earnings than other sectors. But mostly, it is just sector rotation. Traders think they can hide in tech. I say BS to that, and am now way short tech. It will catch up to the rest of the indexes on the down-side.
Matt