You Got It

We got the rally we were looking for. I said 5-8%. We got about 6.5% across each of the indexes. The rally was pretty weak. There wasn't a lot of volume to signal some conviction in the positive move. It was exactly what to expect in a bear market. I am still short on the index ETF's. It was painful to look at the account balance in the afternoon, but I took heart knowing that there was nothing to this rally.

The (GLD) ETF trade I mentioned the other day doubled for you today. You're welcome. The trade on Monday, if you didn't do it today, is to take off half of your position and play with the house's money.

You had the chance this afternoon to add to short positions more cheaply. This was about as good it gets for shorting oil. I think it heads lower from here. I can't see a much higher price on oil from here. (USO) puts got cheaper today. It was a good entry point.

The same was true with (QQQQ) . It rallied higher on mediocre volume and most of it was near the end of the day. I bought more puts.

Here is another trade to look at. Canadian Natural Resources (CNQ) is a wildly volatile stock and is highly correlated to the price of oil. The stock was up over 20% today. It will revert to the mean soon. Buying puts a strike or two out of the money probably makes a lot of sense. Until next time, stay low risk.