Sorry about the lack of posts today but I was out of the office. The Dow and the S&P managed modest gains after some of the worst selling we've seen since the 08' collapse. The NASDAQ actually managed a respectable 1.1% move up, albeit on light volume. I bought some SPY OCT 114 calls yesterday when we're down over 450 points cause I saw a bounce coming but quickly sold them today for a small gain as I don't think anyone wants to be long over the weekend. Alexion Pharmaceuticals (ALXN) continued it's breakout in this down market and to me remains the only stock along with Apple (AAPL) that can be bought in this environment. Both are true Q4 stories that should unfold regardless of the overall market conditions. I remain bearish on all other stocks in the short-term. We must get some answers on Europe and a see soft-landing in China. Both things I think will happen, but this market needs to see it. The real story today was gold which continued its collapse falling almost 5% to $1656.20. I've been bearish on gold since it looked like it was forming a double-top the last month and have been predicting a pullback to it's 200 day MA which is a little over $1500. I've been using Proshares Ultrashort Gold ETF (GLL) OCT calls to play the decline. It's a good time to keep your powder dry and wait for this period of unrest to subside.
This is not a recommendation to buy or sell any securities. DAK was long GLL and AAPL at time of publication but positions can change at anytime.
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