I feel like we may be there again. The one thing I don't see yet is panic capitulation selling. We see a gap down, followed by a BTFD crowd, then more selling, then an end of the day BTFD. That said, I have a lot of gains on the books right now on my options(currently long VXX 32&36, short SPY 130, long GLD 136 and long SLV 34). I think it may be time to take profits. All but GLD expire Friday, but I don't plan on rolling over for now.
There's clearly a lot of intervention going on at the moment and I'm not looking to get caught in front of one of those if its a runaway pump.
Finally, the yen carry trade collapsing is possibly in play but the BOJ is intervening hard to make sure it doesn't strengthen to its true value. However, it keeps running right through each time. The higher the yen goes, the more larger players are going to be liquidating to cover. I plan on watching the yen closely since the broader markets tend to be moving off that lately.
I'm not 100% sold on selling out tomorrow. However, I certainly am leaning that way.
sorry to see you leave zecco (kinda). i've put your blog in my favirotes, plan to check often. what do you think of options house.com. thinking of atleast taking advantage of 100 free trades and seeing if i want to stay after that. good luck and i'll be back often to check on your post. will be sad to not see your killer percenting rating though.
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