Big Ben turns hawkish?!

When Big Ben turns hawkish, the real inflation picture is likely to be worse than most would imagine, and that casts a long shadow for the market in the months to come. In the meantime, bulls tried very hard to hang in there, and they might get some bounce tomorrow. I hope many energy/commodity names will move up in next few days so I can find better entry points, possibly use backspread puts as initial top catching strategy.

I bought AAPL July 185 calls this morning when it broke 183.5, and exited half near 186, while holding the rest for tomorrow. I did not keep all for tomorrow mostly because I am getting concerned that something bad might occur (just look at the charts of LEH and WM) that will drag the market down. I keep half of the position because even though it failed to close above MA10, it formed a nice bullish engulfing candle today. With any help from the overall market, I expect AAPL to test the 188-192 zone in the next day or two, at which time I might exit half of the remaining position, while leave the rest for a possible run to 200.

Also bought GS July 170 put around 169, but closed out for a small gain. This market is becoming very difficult for me to have any convictions.