As you know, we took an aggressive, protective short on Wednesday afternoon so it was "wheeeeeee!" on the dip with our prediction of XLF hitting $14 coming in to the penny while our JPM bottom target of $34.75 missing by .10, as we bottomed out at $34.85 before popping back $1 (3%) but, in all fairness, I did say "around $34.75" in the morning – so we knew it wasn't an exact target.
While we bottom-fished all day, I officially called the turn at 2:48, saying to our Members in Chat:
If you want a thrill ride, you can now buy the QQQ next week $61/62 bull call spread for .55 and that should be able to stop out with a .20-25 loss if things go badly tomorrow but make a nice double if the Qs head back up (now $61.58). Note we got wiped out on our this week $63s so not at all a sure thing.
Also, UCO just seems silly at $23.50 with July 4th coming up – I like the July $23/24 bull call spread at .50.
TNA next weekly $47 calls at $2.15 are also fun but those can cost you if things go the wrong way but TNA was $50 2 days ago and $52.50 2 weeks ago so they could make a nice payoff quickly.
Damn, I guess I still think the EU comes through tomorrow….
We didn't have to wait until tomorrow, of course. Someone (who will never be investigated) jumped the gun with a $3.3Bn block purchase of 50,000 S&P E-Mini Futures and that reversed almost all of the day's drop into the close. Then we got word of the expected $120Bn whatever they are calling it from the EU after hours and we got even better news at night as they took …
