Sunday, September 28, 2008

Save them to save us?

Well, looks like the Wall Street is only going to get a half-assed rescue for now, and with that, the major indices may spend a bit longer time at bottom searching before turning up. Right now I am only comfortable about two plays:

1. Short UYG OCT17 puts if the market gaps down at the open tomorrow.
2. Short SQNM OCT22.5 puts and start to build long positions in SQNM or buying its Jan09 30 calls.

The broad commodities are oversold and I am eyeing plays for a technical rebound, however, I might have to be patient until I see how US$ and global recession outlook affect them, right now it hurts my head trying to figure that whole thing out.

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