Looks like today will finish to the upside. We still have 4 hours as I write this.
This is good news for me. I have cash on the sidelines waiting to get in, but not at these levels. I expect more downward pressure, but I want a nice rally to get short positions. So a day like to day makes me take notice.
I am still looking for a 500 S&P and 4000 dow. But it does not go straight down. the rally gives us a Chance to get into position. Now I know you will hear otherwise, so do what you will, but this rally is not the bottom. (In my humble opinion)
I am looking to get long SPY puts out to the first of the year and sell the short months. Depending on what the price is when I enter, I may be for 5 point strikes.
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Hi Dell
I actually went long yesterday at the close on DIA for Sept 77 call.
Today on the rally I got in for the short leg of my calendar at 40% premium of what I paid for the long call.
At this point in time I don't think we have much downside to go so a target of 7700 on the Dow for Sept is not that far off.
If I can sell some rallies meanwhile I'll be happy.
I think Thursday we will test the lows from Tuesday and then start to go up again.
I figured in just over two months I may recoup my initial investment for the long position. Not all that bad.
Talk to you tomorrow. Alex.
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