Full Contact Sport

The trading game is a full contact sport. This is not "Go Fish", (A game that my boys are currently begging me to play) it is a game of high-stakes Poker. Since buying XLF puts on Friday, I have been watching the markets and looking for some of that capitulation that the experts talk about to try to find a bottom.

This morning's open, just caused me to more than double my XLF puts and to also buy SDS calls. I did this because I thought this morning's open was suspect. The mid day volume and the fact that the rally has mostly held up has caused me to abandon all my short positions and switch teams once again. I covered my XLF and SDS positions and bought QID puts (betting that a short fund will decline).

The QID put position was established because the QID screen was up and getting into QLD or another ultra long position with options would have taken more button clicks. Hopefully, the lack of volume in these derivatives won't bite me.

I have no conviction in the rally at the moment. I am just riding the daily trend, expecting the market to close near or above it's opening high. I will probably go entirely back to cash at close, however, not yet willing to bet either way until some additional signals are given.