Jim Hawthorne

Shorting the Double Dip

Thanks for the article! I notice you don't advocate diving into the Ultra-ETF's in your recommendations (SMN FAZ QID SRS EDZ TZA, %etc.) Granted these are indeed risky, but they carry much less risk profile than naked puts of SPY!

With earnings season upon us, there is growing pessimism in the marketplace that a repeat of July is possible. As the Financial Times recently noted, the breadth of collapsed earnings is deep and pervasive; especially in the materials sector. The "wall of worry" may well be about to give way to the "slope of hope"!

If we do indeed enter a correction, there is a long way down before the S&P500 finds strong support at around 940! Whatever the outcome, the 'easy' money has already been made!

Markets Shake Off Unemployment Numbers and Continue Higher

While we appear to be experiencing a somewhat mild (although extremely welcome) breakout, I would appreciate your take on whether or not this is the start of a bear rally (or just another pretty head fake?).

While Thursday and Friday were strong days, they were not exactly a feeding frenzy, and markets that go up in the absence of sound fundamental improvements, or at least the sound hopes for fundamental improvements, are purely technical events that can only give us fleeting opportunities. I have no hope for anything more.

So, Bill, does this move upward have any legs???

(Disclosure: went long CCC, ZEUS, OSG, TX, GTIV, PBT, PSMT and CFSG Friday AM, but with 4% protective stops which I raised at the close.)