Enigmatic Equities Spend Day in Trading Range, Metals/Ags/Energies Come to Life

John Netto -- President -- One Shot - One Kill Trading Wednesday, December 10, 2008 -- 6:29 PM -- My last post 48 hours ago touched upon my concern for the equity indexes to maintain their robust tone as some of the underlying metrics in Monday's rally raised some eyebrows. Tuesday's pullback in the global equity indexes, flat lining action in a number of major currency crosses, and attempt by the metals, ags, and energies to probe lower seemed to corroborate my trepidation. Wednesday's price action in the metals, particularly gold, and ability to see crude fend off bad inventory data are encouraging signs for the sustainability of a short-term, tradable bottom. Like I mentioned in Sunday night's write-up, a move to 800 in gold would be a great spot for me to get delta neutral and play a move back down to the 760 area. It's a trade that I worked into today and was never on the right side but the fact that I am now fully short against my 725 calls places me in the market at a pretty low risk spot to play a move back lower. On Yorba TV Tuesday, (see interview at (http://www.yorba.tv/archive-2008-12-118-2-start.htm ) I gave a synopsis of what has taken place a over the past few months and how I see things playing out in terms of working my gold position. For now, we are maintaining a nimble posture between now and the end of the year and would really prefer a market sell down as it does wonders to the volatility. Looking for tomorrow and the free all day webinar being hosted by IB Times (see webinar schedule on IB Times), I will be seeing if the ES can hold onto the 885 level and if the USDJPY will hold 9212. 13025 on the Euro give me the insight on the overall strength of the dollar so this will be an interesting Thursday. . . . (to read the remainder of this article, please log in below.)