I am going long the market. My 5/7/2012 short call proved out but we have gone down too far, too quick. I am hoping for a 3-5% spike up from these levels with some green thumbs on long ETFs and red thumbs on short ETFs. I may go short again if Europe keeps deteriorating. I think the ECB will get their act together to calm the panic in Greece soon.
So far the 19 long/short ETFs CAPS I picked to play my European driven market heading lower call on 5/7/2012 are all in the green to the tune of 126 CAPS points. I am now eligible to close a number of them. [more]
Today I am taking up some CAPS picks in the ultra shorts as I believe we are going to be experiencing a Euopean flashback, redux, crisis 2.0. Why? Because now that Europe has moved further to the political left, the neat and tidy austerity resolutions which were never really neat or tidy but always prolonged and dragged out will become even messier and more protracted. The volume will be turned up even higher on these seemingly impossible fiscal issues and rhetoric will rule the day. This means markets will have more uncertainty and when the market is uncertain, it sells off. I'm calling for a 10% pullback from current levels by mid June. [more]