Wednesday, January 16, 2008

Stops blown, from 47% long to 25% short

Just after 10am this morning, all my longs were stopped out for losses.

Now we're long 500 of the FXP at 91. It's the Ultrashort China ETF.

Because we are two days from options expiration, two things could happen: a) the mother of all short squeezes happens and our worst fear is realized, selling at the bottom of the recent downtrend only to have the Dow rally 300 points or b) the Dow drops 70 points per day until the FED meeting on January 31 and slowly stops out the long holders.

1 comment:

Anonymous said...

Nice call on FXP!