Weird action from option traders today...the put/call ratio was very low for the first hour of the day which made me believe we would see the rally fizzle and then suddenly it spiked to moderately healthy pessimistic levels which of course has helped fuel the rally further.
I bought about 50% of my intended position in ABX puts given what I saw this morning and now I'm getting my ass kicked. This is Mr. Market's punishment for me celebrating the best day I've had all year a couple days ago. It's OK though because the position size is rather small because it's only 50% of what I had in mind and so I will able to take the pain if ABX and gold stocks in general make a run back to the highs they put in a couple days ago to shake out clowns like me who are playing the downside rollover. This was a danger that I knew existed which is why I commited only 50% of my intended position. Plus, I figured if I got the timing wrong it would serve as a partial hedge for other long positons I have...but you know what....I HATE losing even with hedges!
Mr. Market rope a doped me pretty good this morning. Touche Mr. Market Touche
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