OYE! Locked and Loaded!

I am currently in 25 option trades. All but 4 are puts. Of those 4 call trades one is looking promising (even though it had zeroed out last week) and the other three are not. Of all the profitable trades thus far axing three is no great loss.

Now, I feel heavily "bearish" and certainly will profit nicely when the market turns south. Meanwhile the wait is a little on the onerous side. Even the day trades are all overnighters. We did not add any day trades today and there are 9 of them. (two are double sized... so sort of counts as 11 I suppose).

Some of the securities are options on SPY, QQQQ, IWM with the rest being stock options. There are enough that I don't even know the actual names of the underlying companies nor even the sectors they are involved in. I liked the idea of not knowing these sort of details and I do consider that it may not be important, especially given the trading in process lately, but I sometimes like to have more of a handle on the stocks. I am getting familiar with a good number of the "regulars" that make it onto the trade list each day now. X, BUCY, AIG, FAS, AZO, CTRP, FLS, CLF, ESRX, PCP, CREE, GS just to name a few off the top of my head. Next month I will compile a list of all the stocks we have actually traded and perhaps even the number of trades and profit/losses for each. A little number crunching. On it's own this list really means nothing though, as each day produces new trades and drops the old ones depending upon the setups in the market.

As I watch the major indices this morning they looked bullish off the start...which is good as that has usually indicated strength in the AM and weakness in the PM. This bullish surge also let me fill the last three outstanding orders that I have had in place for a few days now.

If I wanted to look for a pattern I would see the three legged surge into 1030h which has now broken down and there are two surges heading down. If the low of the day is broken down I expect to see some further extension of the down move into a larger move over the afternoon.

SPY is tinkering with the mid $116's, a line that I placed on the charts based on September 2008 levels of broken support. Using some moving averages and discounting some of Thursday's downspike the 200 DMA was tested and held on Friday. The short and medium MAs have crossed into bearish territory and the SPY seems to be struggling between the old resistance and the 200ma levels. I expect a break down as there is not much large upward pressure from the various sectors.

There I go, I was just about to get in to a sector by sector bullish percent index study. I will play with that again sometime but not right now.

As I type this things change...or progress at least. The Q's are just now testing the intraday low, SPY may be on it's third leg down and is near the low of day. Some of my puts are turning green as well...and it is just noon so the timing is about right too.

Jeff.