Dark Cloud

Here comes the dark cloud! Yesterday I completed my trifecta of dark cloud trades by taking a position against the Dow 30. I got into the UltraShort Dow 30 ProShares (DXD) at $36.49 during the pre-market. As it stands right now, I am 2x negative on all three of the major U.S. indicies.

I may a bit early, which hurts in the pocketbook, however I do think we are looking to take a big hit downwards. These recent moves upwards are on lighter volume and I personally think that we will have a big volume day in concert with heavy sell-off.

UltraShort S&P500 ProShares

Got in pre-market on the UltraShort S&P 500 (SDS) at $85.16. This is a pure play on the election volatility. I feel that the market will be weaker during this election week.

Gonvernment SNAFU

Hold on.. just about to get perched up on my soapbox. Does anyone else wonder how some of our elected representatives survive in the "real" world? I could not believe some of those questions they were asking. It seems like they don't have a clue as to what is going on in the marketplace. I'm just as upset as the next investor and there is a ton of blame to go around, but now is the time to fix the issue and then do a little "head hunting." Leave it to the government to fumble and make the process harder than it needs to be. Do they not realize that time is of the essence? Okay I'm done.

Now onto some trade activity....I tried to get into the UltraShort S&P 500 Proshares (SDS) today at a discounted price, but set my price too low and missed out. I think the market will feel the pressure of the continued dragging of feet in Washington. Earlier this week I picked up some Jan 2010 $2.50 calls on WAMU (WM) and went long on the U.S. Oil Fund ETF (USO). HAGO Justin

Update: Looks like the WAMU is done according to recent reporting, so chalk that up as a learning experience. Got a bit greedy and should have sold a few days ago to "lock-up" some minor profits.