Robpriore

Taking Advantage of Google's Plummeting Lows

No question this market is almost inexplicable. However, I had a strong sense this was coming and took steps to insure long positions by making several trades on DJX puts. The DJX is a tracking index for the Dow. Those positions helped stabilize my portfolio and I still have downside protection for some profit if the market continues to fall. I agree with the author's thesis that the market has been oversold though I don't think we should expect any major rebound of the indexes as several macroeconomic factors are not yet priced into the indexes, such as credit card and auto loan default rates. I expect a meaningful turnaround when all the skeletons are out of the closet, so to speak. Now, I do expect a market rally to occur within the next week or two driven by short covering and value investors. In that light I have call positions on GOOG, DECK, and AAPL. GOOG especially reacts strongly to positive market moves. And for long term investors it just might be that GOOG at 290 is a once in a lifetime opportunity. Just don't mortgage your house to buy it.