Monday, April 20, 2009

Heading South?

Today was good, locked in some profits on RTH puts and $NDX puts...If we open higher tomorrow on TXN news, it will be a good entry on the short side. We need to pull back below 50DEMAs on $spx and that will confirm the downward pressure for sure. Meantime, I am playing it safe on both sides, e.g., I bought long dated calls on SUN and FRO today... Good question - Why SUN and FRO? ....I believe that Oil and Nat. Gas is done going down... no matter how bad the weekly inventory reports come, the price is holding up. So, by mid-summer, I believe that money will definitely flow from Financials and RTH into Energy again. I also bought some GMXR in my IRA account. I am building energy positions in small increments, and if the stocks that I mentioned come in more, I will buy more to average down my entry point.

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