Friday, December 23, 2011

SPY- Would not surprise me

I closed my calls yesterday, but I can see SPY hit this level by the first week in January.  I will post when my SPY short signal hits wherever that level may be.

Merry Christmas everybody.

Thursday, December 22, 2011

GLD- Reversing long to short

Gold also had a swing high earlier than  it should. So I am taking my signal and going short.  Out of all of my miners, and I am out of my very profitable SPY trade, as well.

I am going to sell some condors for the next weekly, and continue to build a short book going into the new year.  I will post anything significant.

Merry Christmas everyone.

Friday, December 16, 2011

Buy Signal on SPY

Plus buy signal confirmation on miners, gold and silver.

Thursday, December 15, 2011

Bought GORO

Per my earlier post, I expect a epic short squeeze if GORO catches a bid.  The chart suggests strength and I took a position at the open.

GDX follow up

I am now watching for buy signals on individual miners.  I jumped the gun on FSM, AG, and EXK with purchases yesterday.

Wednesday, December 14, 2011

I bought GDX calls

Closing Shorts and Buying Metals and Miners

Closed my EDZ, and ready to close my SPY puts.  I have been buying GLD and SLV calls and bought EXK, FSM, and will buy AG here.

Tuesday, December 13, 2011

Sunday, December 11, 2011

Follow up post

I filtered my list of short squeeze candidates and put them through a low vol filter.  Here is the list below.  When the Bollinger bands collapse and there is high short interest, the the timer is set for a move higher.

Hypothecation and an epic short squeeze?

By now everyone has read about MF Global and we are all now familiar with hypocathecation and re-hypothecation.  One of the bizarre side affects that we should watch out for is a massive short squeeze in equities, and I think most importantly the metals in the futures markets and the miners in the equity markets.

The miners have been relentlessly shorted in a paired trade for the past year, and the metals/miners index is nearly back to 08 levels.  My view is as more and more brokers decide to reduce their risks, they are going to be calling back their shares or closing short positions they allowed to be borrowed and/or close massive naked short positions and a massive squeeze will be on.  It will only take one broker to start the ball.

To prepare I looked at the biggest short positions per trading volume and posted those below.  There are some nice gold and silver miners, but what stands out are the Uranium miners and GORO.  I will start adding positions in these names.  Days to cover is on the second to far right column.