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1. The GS calls do not act as a proper hegde, hence closed out the option position. (Miscalculation on my part… either I had to add more puts or get rid of the calls, so I got rid of the calls.)

2. Took my profits with F. Could be a good long-term story here, but I was playing it for a trade and got my quick 12%. Can’t complain. But I will be watching it to trade it again. (As for the long-term thesis, the play is not for the health of the auto industry. It is a play to get F back to profitability, and a healthier company. Which is a very real reason a stock can go much higher, especially one whose company recorded $127B in revenue.)

3. GOOG - I shorted GOOG due to its technicals in the AM. It broke its high momentum support, and may break down to its next technical support at 380. (will cover at 380)

If the SP500 see the low/mid 800s GOOG will retest the 360-370 range.

Individual stocks that I follow are at strong support levels. Instead of buying more of them, it forced me to cover some of my market protection.

ie… BNI, FCX, F… etc… although I am looking to buy FCX. 

Also, F looks interesting here for a trade. But if it breaks 4.65 I would stop out of it. (They priced the offering right at its 28SMA… as if catering specifically to traders.)

Earlier I entered a light position in GS calls as a partial hedge to my fairly large SPY short. The reason is because I think GS will mover up harder and faster then the market (if the market rises), and a weaker down move w/respect to the market (if the market does go down).

Doing my evening reads (yes I read at night too ) I see Cramer did a segment on GS. This is one of the few time I completely agree with Cramer, and the chartist’s view as well. Actually, GS is also one of my indicators to be expecting a market consolidation (there goes one of my secrets… another reason why I use it as a hedge).

The weekly says it all, with respect to resistance:

Its overbought and hitting 140 resistance. I do not think it is as strong as a resistance than the 160 level via the 200SMA. The wkly 200SMA also corresponds with the 500SMA which is a clear long-term support level for GS… hence no a major resistance marker.

Because I agree w/Cramer on all his fundamental points regarding GS (as per his video), GS will not see a massive breakdown.

If the market keeps going down, dragging GS with it, GS should consolidate to around the 120-125 level as it gets oversold. (and where I will triple up)

Covered the FCX short, and purchased an new initial position in the common.  There are multiple support levels here. Looking to add if 47 is seen, and will add again at 43 (if it is achieved… but I doubt it as FCX stated today that they are starting to see a draw from the inventories at LME warehouses.)

1. Closed out the calls on my BNI position. It has consolidated enough on the individual level. If further down side is seen it is due to the market, and I am more than fully protected on market down side.

2. Took on a light position in GS via 130 July Calls. (more so to hedge my overweight market short position at the moment, but planned on going long these calls at 125-130. Will add if GS sees 130.)

Not closing out my shorts yet, but slowly adding names due to their somewhat consolidation. (Even though I think stocks will go down some more, this is a probabilities games, and the probability individual names rise increase as they get more consolidated in the current psychi of the market.)

The dollar is officially weak again. The upward trends have broken.

Although the dollar is oversold (w/respect to the basket), and a consolidation upward is most likely in the cards, the chart signals the multi-national plays again… ei… PG, GOOG, MA… etc. (Dollar declines, their international earnings rise)

At the moment, I like PG the best… its part of my core position, not as expensive and pays a dividend it can easily afford to increase (which it just did by 10%).

Purchased NVDA in my very protected account.  It has become oversold recently, and IMO it is the best positioned via the graphic chip makers as more and more computer are using more graphic chips. (search NVDA in the blog’s search box as my thesis has not changed)