Last Friday the Dow closed at 12,200 and Monday we started the new year at 12,450 and yesterday we closed at 12,415 so all the people who caught that move in the futures between 6am Tuesday morning and 10:05 Tuesday morning had a great week and the rest of you can go suck eggs.
What an appropriate way to start 2012 – screwing the Retail Investors over as the Big Boys jack up the futures and then spend the rest of the week unloading their stocks on the suckers who run in to chase the gains they never had a prayer of catching.
You had about 5 minutes to catch BAC (our one trade for 2012) at $5.75 yesterday but it was below $5.90 for 15 minutes and that’s why I can’t put picks on the main page anymore – too many people jump in. Some people are confused as to why we keep making bullish plays when I think the rally is BS and the reason is that we don’t fight the Fed.
Yesterday, we were down and then suddenly there was a rumor (unsubstantiated) about Obama announcing a $1Tn mortgage refinancing program and it wasn’t long before it was $3.6Tn and, while it is something I myself have proposed to the Administration, it was hard to see how anything that actually helped the average American Citizen would ever be passed by the House. Nonetheless, the market did a 2% flip-flop and finished the day slightly higher – painting a much prettier technical picture than it would have if we has remained at our gap-down open.
We went officially bullish on BKS, as planned, at 10:19, selling the Feb $10 puts for $1.20 – another bullish play for the $25KP (5 contracts) – and they recovered so quickly…
