Monday 45

The CAC40 (-4%) is plunging but the DAX (-3%) and the FTSE 100 (-1.3%) aren’t nearly as bad. It looks like the banks are taking the worst of it with Societe General (-10%) and BNP (- 12%) under major selling pressure. You could even say crashing, on the ongoing Euro-ECB-Greece-Finland-Drachma drama. It looks to me like SocGen is in the worst shape. “SocGen set to accelerate asset disposals“.

$GLD and the $GC_F will be interesting to follow today but I’m sitting on the sidelines. The strong (and getting stronger) dollar should have a negative effect on Gold. Will it?

$EURUSD is sitting at 1.36 and a small short position seems very reasonable. It’s also a good time to add some small positions of $GE, $TYC, or other multi-national dividend plays.

Friday the VIX gained 15%, if that happens today the $VIX will hit 45. Will the $SPY head to 113, or even 109?

I’m setup between 112 and 124 for September options, but I’m getting closer and closer to being ‘wrong’. For those of you who like gaps, there will be two unfilled on the opening today. Today’s and this 118-119.

As bad as the markets look this morning, I’m targeting 118. If we break under 112, all bets are off and I’m ‘sidelined’.

Good Trading.