Stocks were sloppy all night (that sounds like a country western song?) and even on the open this morning they were on the quiet side. I’ve been looking for NQ 3000 and we are slamming into that as I speak. From here it gets tricky. There is no reason to short just because we are at a nice round number – and adding a new long here seems akin to signing up for a dating site the week after your wedding.
The market continues to be all about the yen. Overnight it started to rally, and then got hammered again to new lows. The Nikkei has slammed into 15,000, which seems like another good pausing point. One trade here that looks good is buying puts on GLD. Gold rallied overnight, sold off this morning and retested the 1418-1420 zone, and has since bounce from there. I’m looking for Gold to take out that level if the dollar can remain firm. Other than that? Buying a butterfly on GOOG for a potential $900 options expiration pin offers a nice low cost, high reward (and yes, low probability) trade. For today, just take a deep breath and remember it’s not the bulls that get slaughtered, it’s the pigs. (And the shorts).