Buying The Morning Lows Was Smart
I came into today 50% long in my Rydex account and one select long with JCP calls. JCP looked good right out of the gate and I then went into TNA and LVS calls. The market started out with this lame up move, but LVS calls were ripping. I didn’t take the gains. I ended up selling the TNA for a slight loss and LVS for a decent loss, but then I bought right back into it.
When the market really got shellacked I bought ERX, put the other 50% of cash in my Rydex towards the long side in NDX and SPX (would have been better in RUT, but who’s complaining?), followed the money into XLK calls, sold and then rebought my LVS calls again (for another loss), and at the close I bought XOM calls, QCOM calls, QQQQ calls, and a GOOG 450/490 call spread.
I am heavily long here with my balls in the guillotine if it doesn’t work. Well its not that serious, but it will either be genius or dumbass trade. Now I’m not doing this due to wild gamble. There real reasons I am positioned this way and I have laid out most of them.
I’m expecting a GAP and go day tomorrow depending on the size of the GAP. If the gap is large then there is a chance it gets sold, however the gap has to be really big. If the gap up is small to medium, tomorrow runs all day long.
If we get the gap and go type day, I will likely put some shorts back on the table. This is depending on what level the market tests or closes below/above. If we selloff tomorrow, which I really see as a small possibility at this point, its an automatic hold.
If you want to double check my tweets today feel free: http://twitter.com/wwwstockrake