Hideous Jobs report, Futures up!!!??

[aiki14]

It really is quite astonishing. Watch for Treasury to move hugely into the banks today, over the weekend, or most likely monday morning.

[XOM]

I was just thinking the same thing, pre-market financials are up and running, especially BAC.

I'm wondering if the market will sell off in the afternoon though. But as we discussed in the BAC thread yesterday I think there are some large traders positioning for the announcement and I have no trouble beleiving that Uncle Sam guaranteed Lewis that they will not let BAC fail if they completed the MER buy (behind closed doors and off the record of course).

Should be an interesting weekend.

[aiki14]

Not that I'd back this up with too much money but I bet we see 900 on the S&P in the next week or two. I'll be taking some off the table in BAC later today, BAC is up 10% premarket after a 7% up day yesterday, that's a home run for me.

[XOM]

Nice trade Jim. I'd like to get back into my SPY calls, but I'll wait for a pullback or a dip, no way I'm jumping in with the herd this morning, I've seen these gaps faded too many times for that.

I'm still kicking myself for missing that move in BAC yesterday though, that was me looking a gift horse in the mouth.

[aiki14]

Watch the banks closely here, Santelli just reported big moves in the front month eurodollar futures. That speaks of LIBOR coming down, which speaks of interbank lending, which speaks to positives still to come in the lending and money center banks. I'd look at the local banks here as they will benefit from this and their downside is less than the big guys.

[XOM]

I've been watching RF, but no pullbacks to buy on yet, I hate getting in when their up this much already. Not real lunch selloff either.

[aiki14]

I've been watching RF, but no pullbacks to buy on yet, I hate getting in when their up this much already. Not real lunch selloff either.

I hear ya, tough to enter at such elevated levels.
One thing that is a tad worrisome is TBT, I would think todays action would draw some bond money and it isn't happening to the degree I'd expected. If TBT starts up on volume then I'd buy your RF even at these levels. I am looking at BNCL as well.

[aiki14]

This has all the hallmarks of a prolonged bear market rally, financials leading, tech and commodities in the action, high volume. Still liking the S&P to 900 by next friday. Hedges in of course. VIX calls and Index puts as we move up.

[XOM]

Could well be. I just can't pull the trigger today, every time I choose an entry they move higher, I reevaluate pick a higher entry...and they move higher, I was taught not to chase a long time ago. I may just call it a day today and resist the urge to trade, market's not going anywhere.

[XOM]

After much hemming and hawing, I decided on the RF MAR5 calls for .75

I chose this trade for 3 reasons;

1. No premium on the calls

2.I think the rally continues for at least a part of Monday

3. Plenty of time to wait on another rally if this one fails

[XOM]

Sold these calls @ $1.05 for 40% gain. Looking to buy them back on a pullback if it occurs.

[aiki14]

Sold these calls @ $1.05 for 40% gain. Looking to buy them back on a pullback if it occurs.

Sweet, nicely done

[XOM]

Thanks. Bought them back @ .90 Not the price I was looking for but someone stepped in front of my .80 bid and I got stuck at the back of the .85 bid line after that, so with 29 seconds to go..pay .90 or don't play were my choices.

I still like RF for another run up tomorrow on pure speculation and my risk is rather small compared to the possible reward.