Tuesday, November 18, 2008

turnaround tues - expiration week rally

the globex trade overnight fell below the key 840 cash and then rallied strongly on earnings from hp

oil and gold also trying to catch a bid

sold dow futres at 8250 and bought 8130

still short a nov 935 call hoping to go to zero from 7.4

bought a dec 840 put and sold 785 put for a cost of 20(5000) at yesterday's close looking for the 5th wave down to get below 815

tried to buy eminis at 841 but too slow

if the 1st hour looks strong, thinking time to cover more 401k shorts

on the stock front the tech sector clearly will be the feature of the day

watch put call ratio to see if people are selling or buying the early rally

if the last hour stays strong then time for a rally back to 900

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