Wednesday, November 14, 2007

MARKET UPDATE

Trading has been pretty volatile today. The Nasdaq in particular has been switching between red and green every 2 minutes almost like a traffic light. I see no reason to go long or short today. I am currently less than 60% long with 40% in cash. I am adding some QID today for protection. I am contemplating SRS though I missed a good chance in early morning trading at below $94.

I sold have my ETFC position between $4.70 and $5.40 yesterday. I am holding the rest looking for prices above $7. If not I will sell if the price falls below $5. Nonetheless this has been a very profitable trade taking advantage of panic.

Oil, gold and silver are all up today along with other metals and commodities in general. I had lightened up on some GLD and SLV on Monday. The Dollar is weakening against major currencies once again.

The China double inverse index FXP is down over 7% today. A good buying opportunity or proof that these double inverse indices come out at the worst possible time, case in point QID DDM SDS in July of 2006 near the market bottom.

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