2009-10-20; 11:31:54; Mid-day comments on SPX:

Today’s market is weak! Given the “great earnings report” from AAPL, SPX is floating around. This once again tells us that whoever have the big money have the say.

Yesterday’s high is the reference for enter the short. Today might not only be the day for day trading short. It might also be a day for overnight short too. This morning’s low is 10-day trend line support. If that line is taken out late today, then it is possible that SPX is starting the down swing. Please note that time is running out. This down swing might turn out to be a big correction.

We are aggressively buying back puts yesterday and today. We use long calls to protect the up side risk. This can balance the delta somewhat.