11-05-09

The action today after the fed meeting was really bad. We have job numbers on Friday and I think the market will edge up slightly tomorrow or trade sideways with no real movement in any direction. I am going to go long SKF, SRS, VXX, and QID at the close on Thursday. The way the market has been acting has been very interesting. We go down on good news now. I think if the employment numbers on Friday are good we go down. If the numbers are bad on Friday we go WAY down. We hit 106.3 today on spy. Hopefully we can hit 107.50 to get the absolute best entry for these ETFS.

For a more conservative approach one could wait until after the numbers come out and short then. The entry could very well be the best approach. One could also do a variation. I am looking to double leverage this move with options so it is imperative to do before close on Thursday.

Looking at the april $10 dollars srs calls
Looking at the april $30 dollar skf calls

Looking at the volume of puts purchased on the spy, it almost doubles the amount of calls. This was done on good news. Also the UUP which is the dollar had 3 times the open interest traded in the November 23 calls.

Think gold is a good short soon with DZZ.

Think oil is a good short with DTO

Think long dollar UUP