The government does not have a wizbang plan to fix 20 years of overindulgence in the next 6 months. What a frickin’ surprise. Tactically, I have no idea why Geithner was speaking today. Duh. In substance, there was nothing either. However, my takeaway was this:
1) We have a long road ahead with no easy fixes
2) The Government is not going to make a quick policy to fix it. (Thank God. Any more rush to spend $850B and create Sarb-Ox style legislation and I was going to puke).
3) The market is respecting technicals nicely
The S&P rose to the 50day MA for two days (SPX 870), and was rejected. Then sold off right to the uptrend line @ SPX 827.
A thing of beauty. I sold a number of longs prior (unfortunately not all) to the Geithner chat. Bought a number of nicely skewed Mar/Apr calendars, rolled Feb to Mar calendars, and exited some Feb/Mar calendars throughout the day. Nice, albeit, modest profits.
And finished the the day significantly positive delta and positive theta.
A few trades were:
KLAC 22.5 call calendar for a 80% gain
DTV 22.5p and c calendar for a 135% gain
ETG – sold full position
NTRS – covered short Mar 60/65c for a nice quick .60.
PXD – Feb/Mar 22.5p for 70% gain
CREE – Feb/Mar 17.5c for 20% gain
XLF – Feb 9p for .60cr (had Feb 5/7/9p fly on for .25)
HRB 22.5c Feb to Mar for .70cr (second roll, first was for 1.00cr) bought the 3 mo calendar for 1.07db.
SDS – bought, then sold for a quick loss of .24, before it ran up in my face for a 2.20 gain (without me). Damn…