La Pamplona!

25Mar07

Although Pamplona is 5,753 miles away, I was sure as hell participating in Wednesday’s running of the bulls!  Mainly, just making sure that a bull horn wasn’t stuck up my ass!  On Wednesday, we saw Bernanke’s dovish/confusing comments unleash the bulls and trampede the baby bears…. and by week’s end the markets had their best weekly performance since 2003. The facts are that markets love Bernanke and going forward you’d be a fool to be shorting into any time he’s speaking.  Obviously, there’ll be a day this ends but for now shorts be aware.

This week, I managed to make some change on the calls side.  As I previously discussed last week, I was dabbling with calls when SPX was around 1400.  I sold my KLAC calls a bit early, but managed to reload them again on Thursday’s dip.  I also traded calls on a few steel and retail names going into the FOMC announcement. Going forward, I’m slightly leaning on the cautious side until we can manage to consolidate more above 1430 SPX.  The main fact I remain cautious is based on a few cautious TA (technical analysis) comments/charts passed my way.  One being the chart and pattern similarities to pre 1987 crash and the other Andrew pitchfork resistance points. 

If i’m going to get to a million by years end, then I have to manage my downside and be ready to hit a homer when the opportunity arises.  From my calculations now, I can go for 40-50% a month and still get there.  For now, I’d rather sit tight and wait for slightly calmer waters.  I still like stocks for longer term, but for options, TIMING IS EVERYTHING!

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