I have been looking at a bunch of stocks either sitting at the very bottom of the portfolio with 0.1% allocations, or old holdings I am interested in getting back into - and the charts read like a series of Stephen King novels. Certainly these are going to dead cat bounce sooner or later but there is no intermediate term good vibes to be found. I am amazed so much damage has been done and the S&P 500 is only down about 8% from peak; many of these stocks are down by a third or more in 2-3 weeks. I am struggling to put together a list of want to buys when chart after chart looks like this:
As for the S&P 500, I didn't really think 1046 would be in play today with the sanguine opening but as I type this we suddenly dropped a few points and now are at -1% on the session. 1052s and falling fast. How quickly the tide has turned for a market that was impervious to any weakness.
If the 200 day moving average is reached this afternoon I'll probably sell the majority of the puts (this time I went with SPY 106) I bought this morning, as outlined at the end of the previous post. The position size was not as large as what we were holding for the selloff yesterday, but I simply wanted to get some of the exposure we moved out of ahead of the news event of the labor reports. I threw some sheckles shorting BGU (3x big cap levered ETF) this morning as well. I do expect a bounce off the 200 day when and if. I am struggling to figure out what aside from index plays to use for any such bounces - for reasons outlined in paragraph 1.
For your moment of Zen, Senator Dodd says biparisan financial reform is at an impasse.... oh joy. When I read about our leadership I sometimes wonder why the S&P is not below 300. Since Dodd is retiring I can only wonder what financial firm he will be landing at in 2011... when we find out, we'll know which oligarch was most responsible for creating the 'impasse'.
EDIT 1:42 PM - well that did not take long. 1146 is here. Let's see what sort of bounce happens here.