Short and re-short

Reshorted ... bought 300 UltraShort S&P 500 (SDS) @ $35.12

SDS covered

Sold another lot of sds this morning at $36.


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Less short

Sold 200 sds @ $34 for a 18% profit.


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Gold looks toppy

Gold (GLD) looks toppy here. We've tested $1250 3 times now and failed. There are no triple tops -- so Gold will eventually surmount this challenge. But there may be a pullback to the upper $1100s in the meantime.

I'd use this opportunity to write near-month (June) covered calls on any gold miner positions (GDXJ, GDX, GG) and to accumulate phyiscal Gold (PHYS).

I like the $31 June calls on GDXJ, the $55 June calls on GDX, and the $49 June calls on GG.

Euro (and consequently equity) bounce coming

The Euro hit a panic low today around $1.22 intraday. This likely marks a short-term bottom in the eurodollar cross. Already in afternoon trade it has recovered all the way to $1.24. I suspect equity markets may get a bit of a boost tomorrow as the euro may rally on shortcovering to $1.26.

This short-covering will be ahem...short lived. I expect the euro retest the 1.22 area again in the next week or two, and I expect substantial market intervention from central banks again in this area to try to build an artificial bottom.

Sara Lee, you've been good to me

Sold all of my Sara Lee (SLE) for a 52% gain including dividends. The stock is now fairly valued to slightly overvalued.

$9.93 Purchase Price
$14.80 Sale Price

Moving on Up

Bought Bristol Myers Squibb (BMY) @ 23.9 (NS)
Bought more Ultrashort S&P (SDS) @ 31 (S @ 29)
Bought Goldcorp (GG) @ 46 (NS)
Bought Goldenstar Resources (GSS) @ 4.4 (NS)