I’ve closed my FXP(22.73 +0.00), SDS(16.77 +0.00), and SRS(30.85 +0.00) positions.  I’ve opened an SSO(53.07 +0.00) call position for January as well.

As expected, it appears that President Bush is going to tap the TARP money to bailout the auto industry.  I’ve taken advantage of the low open this morning and scalped a bit of profit.  I set my initial sell orders a bit too high and missed out on some nice profits.  However, a quick 15% overnight scalp is not too shabby.

My portfolio is positioned all using the markets money right now with SSO(53.07 +0.00) and QLD(100.27 +0.00) as my two biggest positions.  I’m banking on a Christmas Rally in the next few days/weeks.

Well look at that.  Senator Reid decided to make a few comments this evening and the futures market seems to have absolutely fallen apart.

Today I closed out the majority of my longs and went into the following positions in my personal account

January Calls on FXP(22.73 +0.00), SDS(16.77 +0.00), SRS(30.85 +0.00) and a QLD(100.27 +0.00) hedge. 

It looks like my QLD hedge is going to get absolutely killed in the open if this after hours activity continues.  848/850 on the SPX(1344.33 -0.57) is a key level, and the /ES futures have just crushed through that over night.  I would not be suprised if we open close to limit down if this continues over night.

The prospects for the United States economy are pretty bleak right now, a bankruptcy filing in the auto industry won’t help that out very much. Personaly, I think it is the right thing and the only way that these broken companies can become healthy.  This is just going to be a very painful experience.

From a trading perspective, on a weekly timeline 810 and 757 appear to be the big support points.  If we penetrate 757, look out below we may be going down into the 600′s quickly on the SPX. 

The key thing to think about in this sort of a market is that you must be able to adjust quickly.  I’ll post updates on what I do with these positions.  I’m going to take a look early tomorrow morning to see what the markets have done overnight.  If we go LIMIT DOWN again on the ES, I’ll likely have a few trailing stops put into place on these options to capture some of the profits that are likely to come when the market rockets down in the AM.