Bullish or BS?

So today we had what I would consider to be some market shenanigans as a result of options expiration week. Basically the scenario I just talked about happened. We started up, filled the gap then started to break down below 900 and as this was happening the VIX was lower on the day. At a time when you would assume panic is setting in and we are off more than 1% breaking critical support the VIX is down? I would consider it a bear trap, sucking in more shorts and shaking out weak longs before reversing to be flat on the day. JBLU was down nearly 10% on the day for what I think is no good reason. Oil was up but JBLU is specifically known for good hedging techniques and has been profitable. This ate up over half of my cushion in a day and the timing is obviously suspect.

I was positive or negative on the day depending on when I looked but ended up down on the day. I would need to be very active to try and squeeze out extra profits in this type of environment. Had I thought 900 was the ultimate short term low I would have exited my puts. As of right now it appears that people bought that dip again and we could move higher. I need to have my exit in mind for my puts becuase it has been very aggrevating to watch calls lose value, puts gain, then vice versa without any action. The market could have different ideas than I do so I need to be ready for that even as irrational I think more upside is, the saying is that "the market can stay irrational far longer than you can stay solvent."

If the market indeed wants to go higher I'll look to get some more long exposure but a lot of the easy money has already been made. I really want a pull back to 850 and I will buy with a lot more confidence but it could be a while before we get there and I have to look for opportunities in the mean time.

Total Return for 2009: 151%