Dip Buying Continues

Even with the technical break back below 1000 buyers emerged again today taking us back above that key level. The Fed left rates unchanged, no surprise there but did announce they would end their purchases in short order. This raises the question of if they think the recovery is actually starting and the even bigger question of if it REALLY is starting.

Even though stocks advanced there were some mixed signals at least in my positions. V actually ended up down on the day which is supposed to be my relative strength candidate. ADM is pushing my loss limit and looks like it may be on the verge of breaking down. With the crop report coming out today it apparently was not favorable for their company. /ZC was actually fairly quiet after the announcement, we had the initial sell off then rally, which I think point to further upside in corn in the near term. My futures position was essentially what gave me a gain today.

Currencies seemed to catch a bid at their trendlines today, both the Euro and AUD were bought. I had wanted to get into the AUD/USD but still don't have funds transferred to my forex account.

Financials and materials were fairly strong again across the board. I think I will wait for a true direction to unfold until I move any hedges around. In the mean time if we remain range bound I will get to collect some more premium wih my short option positions. LVS had a nice pop today but left me wishing I was more directional. I hope volatility contracts and if things are looking up in the market I may buy back my shorts and let my long calls ride. Jobless claims could be a catalyst in either direction tomorrow. I have noticed that job posting have increased on local websites fairly decently which could signal better things to come in the next few weeks.

We shall see what happens, either way we go I hope my positions do what they should.

Total Return for 2009: 138%