Taking money from the Fed and our future.

As God as my witness, I am looking at my TD Ameritrade Think or Swim platform today, and I put on a bearish call spread (November 110/112 call spread) 100 times and went short 2000 SPY. It made me just shy of $6000. And I did NOT get killed on short positions since March. I really just felt that 1100 on the S and P 500 is a good intermediate resistance point, hence starting the bearish positions.

IF we fall in the Dow a couple of hundred more points, I will cover my short positions again, and then stay delta neutral (neither bearish NOR bullish) but this market looks really fake.

SO much paper money being created by the Fed in a negative interest rate environment. Recall that relative to gold and commodity markets, this stock market has actually UNDERPERFORMED since March.

All we have done to get this rally is basically trash the dollar… and our future.

I am floating on cloud nine. It will be good for everyone if this market retraces like this. The bulls will get another chance to buy lower, the bears will make money on their short positions, and the retracements will allow both retail investors and institutional managers another chance for moving money into the markets, and the low low volumes show Goldman Sachs and Morgan Stanley were probably just trading with each other.

And finally, this fall in the markets brings some more sense to reality… A much needed reality.

- Samuel Clemens

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