Today’s the day

I’m not really expecting anything in the market today, but if I were to make a prediction it would be that the market will start lower and though it might move higher, it will end lower. There could be a lot of manipulation today, as many traders will not have a general sense of where the market will be headed. It should be going lower because nothing has been fixed for the major financial issues, only things have been postponed.

GS had a great up day, but everything was working in their direction yesterday in order to make that happen. The good news overshadowed the truth. The truth is that GS didn’t do as well as they have in previous years (or last year). Because they said things aren’t as bad it could be, the stock went up. That’s great for lots of people.. the longs felt good, the shorts might have gotten squeezed, but the good news for me is that I have more room to make money on puts.

LEH had a fantastic up day, going up over 40%. That’s sure to leave plenty of downward space for them to move.

BSC is going to be a prayer for those buying the stock. BSC said they will sell for $2. JPM said they would buy for $2. The stock traders decided that there might be something miraculous to happen before the final $2/share is transferred, assuming there will be a long time before the sale goes through and for some reason JPM or another investor might pay more than the already agreed upon $2 a share. Good luck, I’m not playing there. Though I have been looking into puts on BSC too.

C had a small lift yesterday, but there’s no strength there. I’ll definitely be looking at puts today. Watch for the open time, someone will be buying puts for the Apr $20 levels (probably). I’ll post whatever trade I make, but I want to share my thoughts on that ahead of time. C has had a horrible run downward over the past 6+ months, there’s more room to go down still. I’m willing to ride that downward move another couple dollars before I feel it would be more of a gamble than a safe bet.

All high dollar stocks should be showing weakness of some sort today. FSLR, ISRG, CME, anything around the $175+ will have a lot of room for play today. Find a top, short, sell after a little profit.

I’m looking to spend about half of my cash on one trade, that should be about $3,000 for my initial options play today.

Unless something looks tasty, then I have no problem going all-in.