Well, this is a nice, orderly sell-off so far.
That makes me very happy. We have needed a correction for some timeand, as Trader Mike points out on this S&P chart, while we do have the double top I predicted on Tuesday morning, we are not in a downtrend until we cross back under that 875 line. Holding that level will mean we’re just having a nice, healthy consolidation month – which is what we wanted to see all along!
Our Members could not have been happier as we followed our game plan for the week and got pretty much everything we wished for including the silly morning spike in the Dow and Oil that we were able to short into. If only the Ags fall off their perch we will be entering the holiday weekend with a perfect triple play for the week and back to cash so we can really enjoy our holiday weekend with no worries at all. Of course our hedged entries are still on but they are hedged and we never worry about them do we? On the whole, we’d like to see a bit more sell-off so we can start buying again and, as I mentioned to Members this morning when I reviewed my market value outlook, we are still hoping to see 7,900 to punch our Buy List but we’re probably going to be willing to settle for 8,100, which was the Dow’s May low.
We were willing to settle for $61 oil to short into but we got an early Memorial Day gift as oil went all the way up to $62 despite my warning America that it was a scam and despite my telling Da Boyz at the NYMEX that we would be “shorting the hell out of it” as they took it up. Today we be jammin’ with the USO $33 puts we picked up yesterday at $1.15, just off the low of the day (and they were $1.90 on Tuesday). OIH was also a gift as they ran up to $104 andmy trade idea of the Oct $85 puts I closed out the morning post with came in at just $4.50 as they spiked up and finished the day already up over 20%. People ask me why I don’t pick more straight stocks sometimes and this is a good case to point out that I’m ALWAYS picking stocks. If I pick a put on…
