Hi Jay -
I expect tommorrow could continue part of today's slide - long weekend makes people want to close out positions. I also think we coudl see some wild whipsaws.
I have put sell stops under about 2/3 my long positions, ususaly a few ticks to 1/2 point lower the today's range, so a bit of an outside day won't trigger, but more than that will.
For some the calls that were up, like CCJ, and PD, I put in limit orders above current prices, where they could hit if the underlying did Thursday's move plus about 30% (or someone wants to buy calls real bad...;_))
For the puts I have 'blow-thru' sell numbers that should capture a sharp spike down. I have puts on QQQQ, IGV software ETF, EBAY and ADBE.
The BKX, the Bank index, has broken down a bit, under 102 level.
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Next week, earning numbers will be comming out, and uncertainty will decline for many stocks, especially after a few leaders in each sector report.
Lots of noise about Ford and GM and pension and bond risk. Talk about going under investment grade.
Ford is a big slice on mod=st bond indexes.
I expect that maybe late next week there will be some Congressional noise about adding funds to the pension guarntee fund.
I find it interesting that now that the USD is down to about $1.32 per Europe, and both Ford and GM will have very good cash flow from Europe, not to mentions that European assests have appreciated vs. US debt, that this 'problem' surfaces in the financial press. This time last year there was much more risk. Now the US economy has grown, and the danger is less - time to scare soem people. |
