Exactly what I thought would happen is happening and getting short into the open is already paying off. The markets are down close to 4% now and thanks to news out of Philly showing that there was a contraction in manufacturing when we were expecting a gain. That's what sent the Dow down another 150 from the already brutal open. I'm sticking with QQQ puts and my GLD calls but am 70% in cash. Why aren't I more bearish? Two reasons. One, I think that all these figures reflect July which admittedly was awful. In fact I believe the economy receded in July. But July is over, I think we've already picked up. Two, Bernanke could release QE3 which would send us rallying. In fact, I expect the latter to happen by the end of September if nothing turns around.
-Good Trading!
This is not a recommendation to buy or sell any securities. DAK was long GLD and short QQQQ at the time of publication but positions can change at any time.
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