Bet the VIX - new CBOE product

[DJofSD]

If you want to bet the level of voilitility in the stock market, the CBOE will soon be offering a new proposition bet. It's a binary meaning you win or you lose. Should be a familar concept to a handicapper.

Details on the CBOE web site here. (http://search.cboe.com/cgi-bin/MsmGo.exe?grab_id=0&page_id=33484&query=binary&hiword=BINARIES%20binary)

[Valuist]

I saw Jon Najarian on Fast Money talking about it. I remember one offshore, I think it was WSEX, where you could bet on the Dow and Nasdaq going up or down for a given day.

[DJofSD]

FM & Jon is where I learned about it.

[Valuist]

Any new trades for you? In the past couple weeks I added short positions in Fastenal (FAST) and Nordstrom (JWN).

[DJofSD]

I took some profits in a couple of positions over a week ago. One was CSX when I learned about the problem the CEO was having with activitist. Long FWLT and APC. I am not anticipating any trading until after the short week is over and the market digests the recent quarter window dressing and further hand wringing over the financals. Like Guy, watching to see if there's any capitulation in C and watching BAC, WFM and Wakovia.

[Valuist]

I'm definitely not going to try and call the bottom in financials. I think they're still too troublesome with more writedowns very possible. I know in the past 15 years the financials have been significant but I suspect over the next 10 years, they will not be nearly as profitable.

[BetHorses!]

I saw Jon Najarian on Fast Money talking about it. I remember one offshore, I think it was WSEX, where you could bet on the Dow and Nasdaq going up or down for a given day.


It was ESB (English Sports Betting).....how you been?

[Valuist]

It was ESB (English Sports Betting).....how you been?

Good. How have you been? I can't too much during the week.

[BetHorses!]

Good. How have you been? I can't too much during the week.


I have been great. I have a 17 month old daughter now so its tough also. BTW, I think JWN is a great short.....I mostly hit and run day trades playing for a 1pt or 2, so its been good to me. Tough to be in anything long term unless its a google.

Good Luck

[Valuist]

Of the big moving sectors this year, I like natural gas the best. Unlike coal, which either is up $5 or down $3 or $4 every day, it seems like stocks like CHK just go up $1 to $1.50 about 3 times a week. They get mild pullbacks and I know that it won't go on forever but I dont think the nat gas run is over yet, either.

[ddog]

agree, in fact i think it's got a ton o run left.

We are using tons of the stuff to generate electrical.

We should be in nukes for that, but , oh well.....

Maybe issues with Canadian supplies coming down the road.

[Valuist]

Some of the commodity issues got massacred today. I own CHK, which was up 10% after an hour or so of trading but actually closed down a little bit. Don't know when coal, steel and ag will get moving well again but after today, I'll let somebody else try to call the bottom in them. Worse yet, as bad as today was, the VIX still hasn't hit 30. Its getting a little closer (around 25 1/2 today) but panic hasn't set in.

[ddog]

gold oil + nat gas, i still like em just like gold and oil back in Oct.


hanging around still.

Still short fin big 3 .
They will have to club me like a baby seal to knock me off those.

I still think the last month or so were the lull and now move is down. My second leg down coming up.

yeah I know, shocking, who ain't calling that.

next few weeks will be very interesting.

Short day thursday, should be FUN.


bernie has got to raise rates like we asked him a week ago.
his only chance now.
he has the slowdown , oil is killing him anyway plus dollar weakness, i say pile on the punishment now while he can scapegoat and get some air under those rates for next year.
This one is toast.


After all, look at that ISM, WOW!, economy is growing one should be raising rates into that right?
:lol: