Character Change In The Stock Market

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October 27, 2009

There is definitely a character change in the market. If you have been reading, I’ve been in front of it. 100% short in my Rydex account, numerous call positions in FAZ, SRS, SDS, SKF, and puts positions in SDS, QLD, SKF.

Today I sold out of my Rydex shorts, and sold off alot of my puts and calls. My twitter account covers some intraday trades I made today.

I still hold FAZ Dec 20 (but sold position in other account) up 39%, SRS dec 10 calls, SKF dec 27 calls, SRS dec 12 calls (bought late today).

I also sold TZA in one account, but held it in another account.

I’m expecting a potential bounce, so further selling tomorrow, I will sell more into that move. If we rally….I will short with impunity.

The market has reacted poorly to earnings releases, has crushed bullish patterns, and in general just flat profit taking. Couple this with the dollar making its moves to the upside and causing a short squeeze in different currency pairs is bad for commodities and has crushed particularly bullish patterns that were developing in the ag space. POT, DE, DBA, BG, and more.

I’m thinking about two scenarios we either bounce here and the chart will show why I think that, or the bounce “psychology” that has trained people throughout this move to buy the market at certain points will get snapped in half.

spxmid

The Snapper:
spxsnap



  • http://www.stockrake.com StockRake

    I want to add that I am still short and have short exposure. I just have less exposure to it. However, I have so much liquidity that I will bury right back into that position if I see the right conditions.

  • http://www.stockrake.com StockRake

    I want to add that I am still short and have short exposure. I just have less exposure to it. However, I have so much liquidity that I will bury right back into that position if I see the right conditions.