I am counting today's stock market action as strike two (three strikes and the bear will come out to steal some picnic baskets). Stock market bears were likely licking their chops, when the news about Steve Jobs and AAPL came out. AAPL went down 7% in overseas trading, but is now only down about 2%, with the broad market moving up.
Earnings will be a huge factor in how the game is played out in coming days, but active bears have already been skewered--their visions of a big down day dashed again.
I came into the year long gold, short bonds, short stocks. For now it looks like a whiff on gold and a whiff on stocks. Fortunately, my gold positions were of the low conviction variety, so have weathered the mild downturn.
Not so much my SPY bear spread, as that has lost 60% of its value. When the stock market opened the year with a strong rally, instead of the decline I was looking for, I quickly hedged the Feb put spread, by selling January puts. That action saved the bacon, getting me to about at break even for SPY trading despite being so wrong at the gate.
Long GDX, GLD, SPY, TBT
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