Bought More Calls at SPX Cash 1202

If it crashes straight to 1150 or 1100 so be it I guess...even in the gigantic 2008 crash or the 2010 flash crash or the January 2008 selloff we had big snapbacks along the way. I don't see why it will be different here. We are now down about 150 points in 9 days. I think trying to hammer it down here is more dangerous than catching the falling knife. I think we'll see 1240-50 before 1150-60 and that should be more than enough to get me out with profits. If not, congratulations to those who short it successfully straight down another 50-60 points from here.

Edited by Macro Speculator, 04 August 2011 - 06:04 PM.

If it crashes straight to 1150 or 1100 so be it I guess...even in the gigantic 2008 crash or the 2010 flash crash or the January 2008 selloff we had big snapbacks along the way. I don't see why it will be different here. We are now down about 150 points in 9 days. I think trying to hammer it down here is more dangerous than catching the falling knife.

I think we'll see 1240-50 before 1150-60 and that should be more than enough to get me out with profits.

If not, congratulations to those who short it successfully straight down another 50-60 points from here.

In the same boat myself and I do have a pitchfork with shows SDS (short S&P) with a peak around 25.25 or about 2163 in NQ. It may take Ben speaking on August 9th to snap people out of this but I suspect it could be choppy here for a bit. I have considered a straddle but it carries with it a fair amount of risk with lower rewards.

Edited by MarketAlly, 04 August 2011 - 06:17 PM.

You have definitely the odds now on your side for a massive squeeze for sure. I will buy a break of 1200 tomorrow on jobs, they are selling anything and after today you would expect them to continue with the mass exit a bit more in the morning... This last 50 point drop is just stupid... But then it makes sense if the market is going to 650... OTOH, the point is Bernanke betrayed the markets, he said he would gradually pull his support, but Fed support just disappeared after June 30th, he should at least gradually continue to buy Treasuries... Oh wait! The govt stopped printing last month... Nevertheless, this is the effect of going from $100B per month to $15B, the market along with all the debt headwinds, had a massive liquidity shock...

I'm buying a bit the open myself. Next week is transitory in the weekly chart. A bounce exists in weekly components and daily is way down below projections and capable of a mean regression, but if it can't hold it's gains next week, the projection turns ugly to 1100 area in 3-4 weeks. I expect some of both with rally and then 1100 later anyway. A stop would be a little below today's close SPX 1196 Fibonacci close.