I’m watching today’s trades and trying to figure out what is happening.
It seems to be 2 major factors.
1 – The energy sector is collapsing, we knew this.
2 – Productivity was down .6% for the quarter.
Productivity going down plus hiring going up tomorrow is sure to freak out the markets but since the productivity number is for Q4 which includes hurricane issues plus a poorly placed holiday season, I just don’t want to give it that kind of weight.
I’ve been buying here, just a bit, looking for a floor. Those oil puts really saved me today!
XOM may be the last oil company to turn off the lights to the downside but oil under $65 will make it succumb to the gravity of the sector. The $62.50 puts seem right at $1.80 (a .80 premium).
Take the profits on SUN if you made that trade! The $90 put went from $1.30 to $5.20 so at least sell half – just in case.
The SU’s still have a way to go – I’m hoping for $75 but will get out if VLO starts coming back.
RIMM had a massive sell-off this morning which I saw as a chance to double up on my calls, it’s recovering already. Before you panic about things like this, look at the daily charts:
http://stockcharts.com/gallery/?rimm
See, now that doesn’t look bad at all does it?
“They” are so scared to let Google drop negative it’s almost funny. I think the damn is breaking and I am 100% negative at the moment.
