Quick update here as I have to catch a plane in just a bit. I’ve entered into long CALL positions on the SKF and long PUT positions on the SPY in the papermoney account. My personal account is following the SPY position, not the SKF position. I am leaving a lot of powder dry in my personal account to trade /ES and I don’t want to tie up capital in the SKF trade.
SKF
The financial system is still horribly broken. I expect a near term correction and anticipate that it will be led by the financial sector. When that happens, SKF should shoot up. My entry on this was a bit early so we will need to see additional declines in financials to achieve healthy gains. I still remain confident in this play.
SPY
We should retrace towards the 770 level on the SPX(1344.90 +19.36). 800 remains a reasonable level of support, however I expect a pullback towards 770 before a substintial push higher. I have purchased the June contract to buy enough time to allow this to develop.
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