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I came into today only long some CHK calls. They were up over 40% at one point today and finished negative at the close with the market selloff. I kept them. I think the market is going higher, but my confidence level is not particularly high. I’m only looking for a quick move upwards that changes some of my signals and makes people think we are bottoming. Its at that point I’m looking to short.

Then again, maybe I’m wrong and we just base out here then break lower. Could happen just the same. I said a few weeks ago that it gets tricky here and its been tricky ever since.

I decided late in the day that I want to get a little more long. I bought ACI, AKS, and X call spreads. If there is going to be a bounce, the worst is going to get the best bounce.

I have no delusions though. The trend is still down and there is a shot we turn back up, but I’ll only believe that scenario if we actually turn up. What I’m playing now is short term and at this point trend neutral/counter trend trading.

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