Market Recap 10/4/2011

What a day! We had an absolute roller coaster today that gives turnaround tuesday a new meaning.  We had a fairly nice gap down at one point premarket the SPY was down almost 2%.  Right off the bat at the open the s&p tapped down to the 1075 level and the russel got down to 600  before bernanke and the programs kicked in after 10am.  Right off the bat you could see buyers emerging people have been waiting for a week to put some cash to use on the longside and they ran the market till 1pm or so.

As often we got some typical late day weakness that forced many to unload their positions as many traders are extremely skittish and with proper “sak”  ( i know cause i almost faz’zed up!)  right now and just trigger happy to start loading up the devils etfs tza, faz, ery and short the market with some leverage.  A bit after 3 right as the s&p was nearing its lows of the day some well placed news EU Bank Aid started to run a skull crushing squeeeeeeeeeeeeeeeeeeeeeeeeze.  Once we started to take out some resistance on the 30min & 60min charts the buy programs really kicked it in gear.  The rusell ran almost 6% in the last 1 hour of trading! This is why playing the shortside when the market is so oversold is such a pain..you have to take profits as soon as you get them.  We had a classic textbook breakdown only to squeeze right back where we started.  As I said on the blog in the morning MorningGameplan this gap down will probably get bought as we are testing some new levels of support which is where we covered our shorts and went long. Right now money can be made but without clear trend its a scalpers market.  If you try to swing you will just end up eating  your own brain as holding multiday swings is nearly impossible.  Overall this puts us right back in the trading range we have been in the past 2 months.  Back to the range we goooooo.

In the scheme of things this might mean anything but it does invalidate the break of the range. We could be setting up for a short rally here. I added in some swings late in the day that i expect to fistpump all the way to the bank. Do not discount people potentially chasing this market..people are willing to sell their kids to goose their returns by year end as 99% will be in the negative. A trader with negative returns by christmas will have a hard time explaining to his wife how he blew 100k on coke for the year.  By no means does any of this mean anything. We have seen big rippers into the close numerous times the past 2 months we had one last wednesday that was smacked down the next morning.  If you swing anything these days I like to have a nice 3-4% profit cushion on it so that if we gap down i break even.  And most of the time I will always sell partial position for profit into close to lock in gains taht way whatever happens next day is on the house.

its a tough market. if you got problems with your strategy that need tweeking or someone to point you the right way feel free to email me.  kunal@bullson.ws

in the boom factory we had a most epic day selling our FAZ overnight hold around 78.25 fro 74.7 add last night
JVA in 7.4 out 7.64 and 7.94 back in 7.75
REDF IN 5.05 out 5.25 & 5.58 still holding partial
UYM IN 24.05 out 1/2 25.15
AXAS in 2.12 out 2.12 added back end of day 2.19 out 1/2 2.31 swinging rest
MGM IN 7.75 out 8.08, 8.45, 8.34
gmxr in 1.75 out 1.82 back in 1.92 for overnight swing
sify in 2.8 out 2.9, 3.01, 2.84 have a few left for fun

and a whole host of other great calls from tspt, mela, tzoo we had our hands in all of them. Overall a crazy day.
going into tomorrow. got some partial positons for swings in sify, redf, uym, gmxr, axas, jva, tzoo

if mkt gaps down big tomorrow i will be very angry.
+5% ON uym