Perhaps to show support for Madoff, or maybe just remembering Charles Ponzi, traders paid tribute by bidding up stocks….for no reason whatsoever. The Russell showed a little bit of sense by staying in the red most of the day and ending there.
The futures in the morning reeked havoc on my short positions, but took off running at the open. I quickly started to cash out half my positions, fully intending to get out of the rest as the markets moved down. After taking my profits I left my office to check on the air conditioning people trying to repair the A/C. By the time I got back, my remaining positions were well underwater and stayed there most of the day…and worked their way back to a breakeven by the end of the day. I even picked up some IWM puts to take advantage of some good positioning for tomorrow.
Yes, I’m still looking at a down market. But, this low, low volume is making it hard to interpret what traders are looking at and what they are trading…and why. So I’ll trade what I see and take my lumps, or profits, as I see it. So far so good, although the intra-day noise makes for some scary moments. Be careful out there 
0 Response to “A tribute to Ponzi”