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I bought the market today heavily. I bought UWM, QLD, and QLD October 49 calls (bought them early and I bought the strike I didn’t want). I bought the calls in a frenzy lining up other trades and realized I got the strike I didn’t want, but I’m sure its going to be fine because if we get the move I think is coming, these bad boys will be up huge.

The second thing I did was buy the index long funds – heavy. I’m long the NDX, RUT, and SPX. The usual suspects.

I posted a few days ago a list of double leveraged long etfs in case you are into that sort of thing.

Ok, so everyone is going to be talking about the bailout plan and how the market sold the news in a puking like manner that led to people just giving up on the market. The worst week in 7 years they say. I say good. Now that the media and the regular investor will mire all weekend about their accounts wondering when is the pain going to end. You wanna know when the market has likely hit an emotional bottom? When you hear people talking about it at a restaurant at the table next to you. When your neighbor starts noticing how crazy this market has been. When the avg investor (nobody who reads this blog) opens their monthly statement and has a conniption.

Do you think the Fed, Paulson, GWB, the House, the Senate, and the media, who worked their arses off, trying to get this bullshit bill passed are going to let these markets drop? Both Tim Seymore and Joe “Mr. RIMM” Terranova, mentioned that they “think” a coordinated rate cut is likely considering that what we’ve seen for the last several months is a coordinated global recession.

Does the econ data look bad? It looks horrible. However, the market looks forward and there are times where the price action catches up to that pricing. We may be there now or it may be temporary. I think the negative news flow has lost some luster, with the exit of FNM, FRE, AIG, WB, MER, LEH, WM, IndyMac, and of course BSC. The bad paper players are mostly gone from the market. We don’t know who is left, but there aren’t many big targets on our side of the pond left to shoot. When the big targets are not in reach they will go after the little players, but those little guys can’t hold a market back.

I’ll save a list of oversold plays for another post.

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