I hope y’all made some do-re-mi today!

Even if you’re wrong about the markets, and I’m in no way suggesting you are, I see a very bright future ahead of you as a screenplay writer.

Goldilocks and The Three Bears in:

Pet Semetary 2: The Growling

I’d pay 10.50 to see that.

This is more like a Pet Semetary resurrection of Goldilocks – and I wouldn’t turn my back on her if I were you.

Not only does the overall action remind me of 10/28 but the action today also reminds me of 4/4/00 when the Nas traded in a 600+ point range (15%) and ended the day strongly (though still down a bit). In the end, that lasted about a week as well until it broke through the 4/4 intraday low and plummeted to new lows.

In fact, run a daily chart on the Nas from 3/23/00 and overlay it on the S&P chart starting on 10/1/08 and you’ll see strikingly similar movements. I fully expect to sell the SPY calls I picked up this morning before option expiry next week…I’m guessing by mid-week if not sooner.

(I don’t believe we have either. I usually do better betting against myself).

As for the bounce, today’s gain barely covers yesterday. Tomorrow will be interesting.

The G20 meeting is nothing new, but I wouldn’t want to be overly short going into it. Only “shorts” I have right now are puts on long positions. In the meantime, the IMF should do something useful that would actually help the global economy and in real terms probably cost very little: temporarily back letters of credit on shipping. If nothing else we’d know if “we can’t get letters of credit” is really just a scapegoat for “nobody wants to ship anything”.

Stock market is skitzo right now, quality stocks are being destroyed and the general indexes are seeing low to high rallies in the 10% range.

Personall outside of closing shorts I got my avg price on tck.b below 7 as well as energy, infrastructure utilities and some income trusts and sold off a good chunck into the close of anything I’d been averaging heavy into to keep my position sizes in line while lowering my purchase costs. I don’t really trade just like to short the general market, buy puts and buy/sell certain names to keep my portfolio from falling in value and keep quality names in it at all times for when the rally decides to show up. I’ll be selling until we get to 1000 and then I’ll become a buyer again at 850 or a seller again at 1100.

Anybody selling in the money puts at capitulation as a way to accumalate their long term quality portfolio?

Interesting that you said “over the next week”. When I switched over to the daily chart, the first thing I noticed was that today looked like a carbon copy of 10/28. That rally lasted all of 6 days – as did the following selloff. Guess we have our bull and bear markets on a weekly basis now.