Wednesday, November 12, 2008

Just A Quick Update

Lots of news going on in Taiwan about Chen Shui-bian's "detainment." Not going to delve into this further, but just to say that it sure is great timing for Ma Ying-Jeou, whose approval rating has dropped just as quickly as the TAIEX, and the overall markets in general. Note, once again, I do not approve of what CSB did, and I fully agree that he should be punished for whatever wrongs he did, although it seems like in Taiwan, you are guilty, until provent innocent. At least, if you are DPP that is. And for everyone who still thinks the general DPP party still supports CSB, you're wrong. The only people left that I can reasonably support supporting CSB still are those who are relatives/family of his, personal friends, and maybe DPP supporters who have had family tortured/persecuted by the KMT authoritarian rule in the past. Regardless, the new DPP chairwoman has clearly stated a new path for the DPP, one which does not go through CSB.

An interesting note while I make use of this segway into stocks: So far, the Ma Ying-jeou and Barack Obama similarities continue in the stock markets. The day before elections, both Taiwan and U.S. had temporary highs, and since, have fallen sharply- I will be keeping an eye on this one.

I've been busy lately, but managed to do well these past couple days because I jumped the gun early on those Jan 85 Puts on the SPY. Yesterday I doubled my position in SPY puts with Nov 95 Puts, and today went in to some FXP (UltraShort China/Xinhua ETF) calls today. I will look for the gap down tomorrow to sell a substantial portion of my shorts. This volatile market is unforgiving, and as such, I will be glad to take profits. Note, I still do expect to see a substantial snap-back rally, especially with Options Expiration next Friday; which gives me all the more reason to protect my profits on those puts. I will have a larger general update on the markets this Friday probably. Until then, be safe, protect your profits and manage your risk!

11/13/08 Update: Went from basically 5% cash, to around 70% cash, exiting all SPY puts, all FXP calls, and exiting SDS position. Looking for that mini-rally over the next couple days...

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