Not too bad...

The rally today was pretty strong. The volume was a little on the light side but overall it was stronger than I expected. Still there is no person in their right mind who thinks we don't pull back from here. The Q3 GDP number will be out tomorrow and it will not be pretty. It will give traders a reason to sell. The other reason to sell will be the home sales numbers.

Interestingly, Obama spoke today and the market sold off. I thought that was interesting. Even more interesting is that Paulson will be speaking tomorrow at 10am. That is GREAT for the shorts. Every time Paulson speaks, the market tanks. That said, I took the opportunity to add a little to my (QQQQ) put position. The timing was good this afternoon when I bought more puts because the market sold off hard near the end. Either way, you could have bought more puts at any time today and you will probably make money.

I have another trade ready for tomorrow. The themes are the same, but the trade is a little different. In a market like this, there are only a few ways to make money. Just like when the real estate market was bubbly and ridiculous, you could flip any house and make money. When the market is like this, you only have a couple trades that are going to make you money. I will give you another tomorrow.

At the end of the day. The fact that Citi is not going bankrupt because you, the taxpayer, are bailing them out is not the sign that everything is ok and it is time to buy stocks again. Keep your positions in check, keep yourself net short the markets, and wait for a sweet little trade tomorrow. Until next time, stay low risk..