My personal positions on SSO(36.91 -0.18) and QLD(58.08 -0.45) will be closed out as soon as the SPX(1103.96 -2.17) gets close to 950. I’ve been doing a lot of research on the current Elliot Wave targets and those coupled with the analysis from www.retracementlevels.com really makes me think that closing out around 950 is the way to go.
I have a series of conditional orders setup to close these suckers out as soon as we get there, if we run up, oh well I’ll miss a few points… I’m expecting that once we get to 950 or so we will begin the trek back down to sub 700. I’ll be working over the next few days to figure out the best way to capitalize on the likely collapse. Some of these orders get me out right away, and a few try to chase a run – that is tough to do with options…
Right now, I’m considering a series of trades including extremely OTM puts on the S&P 500 Cash Index, possibly some Futures Options (they are goofy, so I may just pass), some calls on the 2x Bearish products, specifically in Financials, Real Estate and emerging markets, and just a few flat out ATM puts on the index ETFs, 1x or 2x.
Anyhow, thats my story and I’m sticking to it. We popped up to somewhere around 918 on the S&P today, so hopefully we’ll see 950 by the end of the week…
On another note, the City of Chicago, per the local Fox station, is paying $20,000 if you’ll buy a home. I did a quick search, and it’s true! Quick, buy your house with the new lower interest rates and get your tax incentives!
