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[denleo]

As I said yesterday, the funds are looking for an excuse to sell the market. They had to go all the way to Portugal to find a bank, which missed a payment in order to open down 1% in the USA. Keep selling bounces; that is all I have to say. Thursday’s low is just a temporary low. Friday looks like a bounce day, but inability to do so will be very telling for next week.

Everything is stable; therefore I don’t see a need to change anything in the portfolio.

Open Positions:

Long SPY / Short QQQ from the ratio of 2.107
Stop at the ratio of 2.03

Long XLNX / Short KLAC from the ratio of 0.653
Stop at the ratio of 0.624

Short MAR from 65.53
Short LUV from 26.88
Short IFF from 105.35
Short XLK from 38.97

Long SPX July 1925 / 1975 Put spread from 16.70

Long RTN / Short LMT from the ratio of 0.587
Stop at the ratio of 0.559

Long MDY / Short CNW from the ratio of 5.168
Stop at the ratio of 4.80

Long PAY July 33 Calls from 4.00

Long VIX October 20 Calls from 1.60

Day Trading:

I am very uncomfortable trading this Friday. I don’t see much of an edge anywhere when it comes to day trading. I think it will be wise of me to just observe the action with one eye. It is one of those “glass half full / half empty” analogies: I will miss some opportunities on one hand, but I will not lose in the environment where I’m not sure what to expect. I will take the latter any time.

Have a Profitable Day!