Weekend Reading

Sitting back reading my favorite blogs and subscriptions:

Here is my interpretation: We open with lower futures on Monday, they get pushed up to a mid morning high and that will be a great shorting opportunity. This will be met by a $trin reading of less than .8 or extreme of .4 like we saw on Friday. We could also see the mid morning high met with a weak $tick reading of 400 or less. This shorting opportunity we would want to close at end of day. Some stocks that look really weak are AAPL and GS. You could play these guys with puts for more leverage.

Longer term: We are finishing wave 2 and wave 3 will bring us to lower lows. You may miss out on a couple of points if you are long but we are way closer to the top than the bottom. For example: All indexes were considerably lower in 2003. We had much greater economic times and real estate was creating a massive bubble. Now we have horrid economic times and a stock market that is on fire. Warning: i am not a financial advisor, i am trader. So my plays are highly leveraged and highly risky. Mark to market is my game. If you were to ask me where to invest i would say, "Smith and Wesson." Unfortunately it wouldn't be the stock it would be the latter!

Seriously though, preserve cash and buy some long dated out of the money puts. Don't go crazy and try to get rich. For example, some Spy $109 March puts would be an excellent purchase on any bounce.

I find it extremely disturbing how bearish everyone is on t-bonds. That is why i picked up some TLT calls. This was a very small amount because i am probably wrong with this trade or too early.

I will leave you with this from a blog i read. "How disturbing would it be instead of a Christmas rally a Christmas crash."