Doing Some Covering

For weeks I warned about the manic sentiment and unprecedentedly high levels of call buying. I was starting to sound like a broken record. During that time I built short positions.

The S&P 500 subsequently fell 100 points and we are seeing equity put buying at parity with call buying.

I had some limit orders to cover shorts that got set off on this morning's dip, with the result that I covered some REG, WGO, and MGM. Also some of my Treasuries calls sold.

The market is struggling here in the afternoon even though call buying has picked up again. If we get a selloff anytime the rest of the day, it will be an easy decision to cover a bunch more shorts.