Wednesday, October 23, 2013
Weak Tape Action
From just watching the markets, I see several cracks in the surface. I am seeing lots of strength in stocks like NEM, BBRY, and JCP up. I mean BBRY and JCP are on the verge of bankruptcy. Then stocks like TSLA, GOOG, AMZN, and YHOO are weak. Then we have Gold strong, oil weak, and bonds strong. This tells me that we do not have a whole lot of demand for risk markets like oil, and their is quite a bit of demand for something "safer" like gold or bonds. In the end they should all go down toegether. Along with this, you had the VIX up a bit. It seems it is ready to start mean reverting as it always does when it starts trading in the 13-11 zone. So, I am again positioned short premium, but I have on short delta in in bonds, gold stocks, stock indices, short BBY long oil (as hedge), long JCP, Long GRPN, Long JCP, and long BBRY. This amounts to about 17 positions.
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