What a change in the winds Wednesday brings. The market felt like it was searching for a bottom this morning, and after we failed to decisively break Tuesday’s lows, I decided to cover the bulk of my put positions and begin inching in on the long side. After a stampede into the close, it appears that we have found the bottom in the short term, although I doubt that we are headed in a straight line upward. I summarize my moves below:
S&P (NYSEARCA:SPY) Feb 130 puts–I sold the rest of my position at $4.25.
(NYSEARCA:EWZ) Mar 60 puts–I sold my position at $2.75.
(NYSEARCA:XLB) Mar 37 puts–I sold my position at $2.45.
(SGR)–I bought a moderate position at $47.83
(NASDAQ:BOLT)–I bought a small position at $26.33
(LGTY)–I bought a small position at $8.95
(OTC:CHCG-OLD)–I increased my position by 130% at $3.11
(NYSEARCA:TLT)–I shorted a sizable position at $97.72
Overall, my trading Wednesday was very solid, and I have done an excellent job of managing risk and exposure over the market’s recent volatility. I am definitely net long going into tomorrow, although I could still put more money to work if I find interesting entry points. There are some interesting new developments in the market over the last 24 hours that I will discuss more in my daily market wrap, and they all point to a strong (although maybe temporary) rebound.