Shortly after close of market, CNBC announced that John Paulson had purchased 160 million shares of BAC. Now, what they did not reveal was the fact that this purchase was made in Q2. Who knows what he has done to those shares since then.
Regardless, the BAC shares got a 4% pop in AH. This is a brainless fade-able move. Suckers are buying BAC up at $16+ because they just came to know that John Paulson (the guy who made billions shorting the housing market in 2007) bought BAC at $6 to $10 3 months ago. Almost 20 million shares have traded AH. Very likely John Paulson has sold a big chunk of those.
I closed out my remaining TNA & URE puts on the most recent dip of ES below 991. My initial target was ES 988 – I am happy with 991.
I will likely initiate new short positions after the Fed announcement tomorrow.
EUR/USD should bust through 1.4000 to the upside… The first attempt failed earlier this morning. Oil is a very good buy here for a short pop. One could use USO or OIH August calls. I am more included to use USO because it is tied 1-1 with the crude futures. OIH is a very different animal and has a lot bearing with where SPX is going.
IMO Monday would classify as successful retest of the 880 support region (from May).
Up we go towards the high end of the range.
Every one talking about head-n-shoulder. I doubt we get that. In fact, I am 100% sure that we don’t get that.
We will most likely see SPX 913. There is a good chance we might even see SPX 920.
Currency action suggesting that EUR/USD has again found support at 1.3800, and would go back up to 1.4 and above… in all probability.
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