Thursday, December 11, 2008

Today's Tom Sawyer gets high on you.....

Seeing a lot of bullish confirmation out there. The hold of 818 SPX on last weeks dip set up for that nice rally. 952 is the next inflection point on the way to some August levels (1125-1175). Volatility still pumped so use that to your advantage when using options.

My background as a trader lets me look at certain situations and break them down into simple risk reward equations. Take a look at the TIPs market. They are at an alltime low vs. Treasuries. With the government backing, you have a risk free call on the CPI index while getting paid CD like returns. Great idea for the cashlike part of your portfolio.

Merger arbs are still running scared. BUD closed with $1.48 spread remaining on the table. Show that the playas have zero bullets. Allows the smaller fish to get some nice trades.

Thankful that College Hoops is here. That Curry kid on Davidson is pretty fun to watch.

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