Tuesday, November 22, 2011

It's Shaping Up To Be A Rough Day

Futures have been very volatile tonight.

The /ES has seen wild swings which is not traditional for after hours futures trading to this magnitude.

NatGas (my biggest position) had a good start in spite of the vol in both the eur/usd and by extension the /ES. It has however deteriorated slightly.

It seems quite apparent that the MS/JEF positions I have are going to be stinkers though those positions are hedged with my 2,500 shares of FAZ. It should be noted that I never would have taken the positions in MS/JEF had FAZ not been available to me. I likely wouldn't even have taken those positions by hedging with PUTS.

The position in FIO I have will most likely just shit itself entirely (however comma) I have 40 PUTS in PCLN with a strike of 475 expiring in JAN. So the tech aspect of my portfolio is hedged.

I do have the 175 GLD CALLS expiring JUN 2012 but gold has been apathetic this evening.

That leaves me with my de minimis short eur/usd position that I would expect to perform handsomely if the down trodden trend of tonight's action continues through the opening tomorrow.

In summation, the portfolio is hedged comfortably though some adjustments may be warranted in the coming hours/days. Despite being home for Thanksgiving I have a family member whom is an extremely talented trader so the market is still something we are watching closely. If anyone is curious he/she is 100% short US equities so if this selling is real and continues he/she will be grinning like a 16 year old guy in a whorehouse.

I hope everyone is in good health and appreciating the finer things in life this holiday season. To me that is spending time with my family.


BTW - Ron Paul slaughtered the Republican debate tonight.

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