Monday, April 22, 2013
Weak to Neutral
I don't know about this rally we are seeing. I see velocity to the downside, but the market is acting like it is short term oversold. Fortunately, the S&P's are not closing well. I am hoping to see decoupling between gold, oil, and stocks. It would be good for gold and oil to rise lightly as I am short puts in GDX and long a call vertical in USO. For others out their I would short some puts in BBRY. I have a 15,16, 17 butterfly, but I think I could add some short puts in there. The puts in BBRY are good because of the high vol. Anyway UNG (Natural Gas) seems very expenisve. I also have seen some bullishness in Natural Gas while USO is rising. This is odd tape action, but finally I am seeing very bearish action in Natural Gas with bullishness in Oil. Overall, the S&P tape actions seems fairly neutral, so I am keeping my deltas flat, until I see some weak tape action.
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