Thursday, July 28, 2011

Stock market at a critical point

The debt ceiling crisis impasse resumes again tonight with Speaker Boehner not getting the votes he needed from his own Party. We are now getting close to the point of no return. As you can see from the 2 charts below, we are headed down. The Dow and Russell 2000 are below their respective 50 day and 100 day Moving averages. Tomorrow will be an interesting day and Monday even more interesting and volatile.

I recently purchased TZA Call Options at $2.69 and $2.81 for October expiration at a Strike price of $41. Those call options have increased in value now to $4.80 and I expect it to go to at least $6.00 before the debt ceiling issue is resolved.

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