SELL THE BRAVADO

Sell the Draghi "whatever-it-takes" bravado.

From yesterday morning...

VIX options traders have been aggressively accumulating August OTM calls for days anticipating big spikes in volatility. Whether or not they unwind these open interests today will show their faith in central bankers' "communication skills".

And, there's no change.

More later...

Right on. The noise out of Central bankers has no organization, no growth plans, and no money behind it, The Dragon is toothless. Short, Islander

paciencia por favor....This bear is just getting ready to pounce

Edited by andiron, 27 July 2012 - 09:35 AM.

The morning after Mario Draghi's "believe-me" bravado that had sent the world's stock markets to the moon, the Bundesbank, Germany central bank, says giving bailout fund banking license would be de facto financing of governments, and that would be fatal and prohibited.

Shortly after that, however, Reuters quoted sources saying that eurozone bailout funds and the ECB are putting together a "coordinated" action (another coordinated action) to fully support Spain and Italy. Futures and the Euro spiked higher.

We've seen this movie before. In August 2011, the ECB eventually had to pull the plug on buying Spanish sovereign debt. This time, Mario had better deliver, or this is going to end badly, very.

I exited the majority of my intermediate term position in a midcap ETF today on the divergences. Absolutely no strength in small or mids. This is end of bull behavior. Wrote a covered call on it that didn't get assigned last month (IJH 95) so total return is not bad at all considering. Holding UL, which I also bought end of May, and has surprised to the upside. Good divy. Cyclically we're about done. I thought we'd get more upside than this, and time is up from my perspective so I'm taking my meager profits and returning to wait-and-see mode. Europe is a crapshoot, the economy is marginal at best. Risk/reward is not good for intermediate term trades in this environment, and I don't play the day-to-day casino. SBUX, AAPL results don't bode well a consumer-driven economy. Waiting for another end of the world trade opportunity for intermediate-to-long term. I will be doing nothing but selling bag holders covered calls on my core long-term divy stock positions until Sept/Oct I expect.

Hmmm....

Hmmm....

THX--TM -- Great work, as always!

the'ya think this shows selling under cover of a few big'uns being held up? Great insight. Appreciate the sharing.

$DAX had a TDSEQ sell 13 countdown complete yesterday on the daily and today is the Bradley IT peak, so..... .?

60 min still heading up and I'.m getting some recycles on shorter time frames, but might have TDSEQ sell set up 9's complete under prior TDST line @ by the EOD on $Compx and $RUT hourlies, $INX touch and go, at TDST line now, and price projection @ 1384. All should complete count 6 at 12:30 CDT. So there is time for 9's to complete.

Just in time for the weekend! .

Wow looky tat.. more fuel in the tank! SP1383 Just when it looked like it was about to rollover! I LUV IT! ..and looky that Euro pop ..VIX taught a lesson

Edited by einscodek, 27 July 2012 - 12:29 PM.

Hey Geo, One man's words determine the fate of the world's financial markets. That's what it's telling me. Alright, seriously, I've no idea what's going on. I know equal weighted NDX has been trailing since before 11:00am. In any case, one couldn't have asked for a better short setup than this.

Something is fishy here