Update

The Nasdaq is up roughly 3% on softer than expected words from the Fed. It is nice to have doubled the NQ position the days before. When the markets overshoot to the downside I tend to decrease the trading, and instead increase the risk exposure, this will make sure you are fully participating on days like yesterday. Of course I just missed the XOI calls (as I mentioned here before) as LUPE that I was bidding for. However, over the longer term I think it makes a lot of sense to place market orders. Silver seems to be gaining momentum again, I and will be on the lookout for any opportunities there going forward. The Silver ETF, SLV, is steadily increasing its holding and got to be one of the biggest buyers in the physical market. For now I'm happy with my holdings.

Google just launched Checkout which might be huge over the medium-long term for the company. Think eBay. This will also strengthen the existing ad business.

Looking at potential announcements going forward I think we should focus on:

- Web-office: Word and Excel online. (Think Microsoft, OLPC)

- Gdrive, a virtual online hard disk. (Think thin-client, OLPC)

If only...

XOI is up an amazing 4% after Kerr McGee merger frenzy.. now if I only had those calls I was so close to pull the trigger on 2 days ago... well can't complain I got no oils in the portfolio...

It is all about what is priced in

Everyone is expecting a rate hike next week, and that the market would be relief once it is done. As this is already priced in the we are seeing the upside action right now, beforehand. This is not surprising and in line with what you would expect if you think in term of what is being priced in. While the media increasingly has been warning of catching falling knifes, I have been getting longer and longer until the negative cash position was reached. We are now seeing the payoff of going against the grain. NQ +1.6%, GOOG +2.6%, TTM +2.9%, GS +2.5%, MA +3.7% etc. I wish I was even longer oil names as crude has been holding strong XOM is near 52 week low, to take one example.

A Bargain

Picked up the NQ Sep Future at the 1565 level.

Update

As per typical the Friday Option and Future expiration where shaking off weak hands, although some issues were down on Monday (people selling assigned stocks). The GS puts ended in the money and I'm now long common at a comfortable level. Today bidding on LUPE, NNb and the NQ future, but market took off after orders where put in. I'm looking to play the widening disconnect between Crude (that has stayed strong all the way through this market meltdown) and Oil service stock through ^XOI call options as the time has come to be more aggressive. However I prefer to bid when prices are down on the day.

Another Day, Another Trade

Sold some MA puts, the stock has been extremely strong recently and it's been very frustrating to have been caught on the sideline of this one. MA is up almost 30% since its IPO. Today it is trading lower as the overall market is showing weakness. Put selling is paying an implied volatility of 40%, I got $1 per option for the July 45 strike.

The Swedish market will open tomorrow after today's holiday.

Corrections

The market is in correction mode. Re-valuating stocks after last weeks extreme action. Google up 3%, Naz up almost 2% (unrealized profit in the futures contract), PARE up from below 30 to almost 40 as the company is updating the market. Metals in free fall as the hot money is withdrawing. Crude staying strong, still above $70. The recent IPO Mastercard (MA) should be bought on any weakness as the stock was way under-priced.