Man was yesterday silly!
We ran with some upside plays out of the box but they died by 10:10. I called the top at 10:12 when I pointed out to Members that 2,530 was Friday’s top-out on the Nas and 2,532 was resistance going back to the Friday before. By 10:54, the Nasdaq was back down to 2,515 and I said to Members:
Wow, that turned fast! What a joke that the Nas can pop from 2,500 to 2,530 in 30 mins and then all the way back down 30 mins later – as I said this morning – an untradable market unless you are a real cowboy day-trader.
Of course we ARE cowboy day traders and Mega Kudows to JRW, who called a move into TZA at $20.06 and a move out at $20.84 (4%) at 1pm. My own 1:31 note to Members was: “Volume died at 77M on the Dow at 1:27, only 50M since 10am so very slow at the moment, which means we could start heading up again.” And, of course, we did! At 1:57, I added: “Meanwhile, Nas looks like it’s going to make another run back to 2,532 – just to make sure it’s totally obvious what a farce this market is…”
Of course, at PSW, we don’t care IF the market is fixed as long as know HOW it’s fixed so we can play along at home. As the Nas headed back to our 2,532 target (where they closed exactly for the day), we added the WEEKLY QQQQ $53 puts at .45, which was a play I called at 3:01 in Member Chat, while the puts were still selling for .55 – THAT’S HOW FIXED THE MARKET IS – WE KNOW OPTION PRICES AN HOUR IN ADVANCE!
Speaking of fixed markets, the image on the left is from Bess Levin’s well-titled “Insider Trading Festivus 2010” in which she suggests sending FBI strip-o-grams to the evil hedge fund of your choice “just to f*ck with them!” Bess cautions fund managers not to assume that all FBI agents bursting through their doors are strippers as that can lead to some very awkward moments…
Meanwhile, it’s a Festivus for the rest of us (who are short) as the markets roll back over. Of course, yesterday’s insane market moves served to reinforce our “take the money and…
