Too Slow

I came into the day with a medium sized net short position and was planning on materially adding to the position. The market opened down and I wanted to wait until the first options readings came out before adding to the position. However, by the time the reading came out the market was already down hard.

Traders are still buying calls today. While expiration days are very hard to predict I believe a significant correction has begun. I would be surprised if we did not go somewhere between 5% and 10% lower over the coming weeks. I am off to meetings for the next few hours.

8 comments:

Anonymous said...

I am in it to win it. OL DAWG

Chaos! said...

Even though they're skewed by expiration, the put/call numbers astound me at how low they are. Fear is in hibernation. This could be the sell off that takes hold.

Anonymous said...

Most of the viewers of this blog seem to be day traders. Are there any buy and hold out there? If so what would you recommend buying and holding on dips? I would think financials. Despite the G trying to tax the hell out of them. JPM had great earnings and will probably increase the dividend in 6 months. Throw some long term names out here.

Anonymous said...

I swing trade and post my buys sells here.

OL DAWG

Anonymous said...

LONG ATHX @ 3.19

OL DAWG

Tsachy Mishal said...

My only long at the moment is AMGN. I will be looking to buy healthcare, utilities and staples if we get a correction.

PJ said...

Anon - I'm an intermediate-to-long term trader, and I'm short the financials. I'm with Tsachy, if you want to go long go with dividend paying low-multiple defensive stocks. Financials have a lot of losses ahead of them. JPM's earnings will sink once fixed income trading (aka sell MBS to the Fed) income declines after March 31. They lost money in retail banking even in a quarter when GDP was up 4% and home prices rose. They won't see such a good quarter again for years.

Anonymous said...

thanks for the tip!