Position Status 9/5/11

My current position is cash, money market, PIMCO Global Bond funds and Fidelity Government Income funds. I don’t see any buy signals on equities. My monthly 401K funds analysis showed for my first 401K that the only fund with a green to invest in is Fidelity Government Income fund, and I am already in it. In my other 401K, three funds are green; PIMCO Real Retn Admin, PIMCO Global Bond fund and Fidelity Government Income fund and I am in two of the three, so no change is required in my 401K choices for the next month.

I had seen opportunities to bet on the downside last week after the bounce. Unfortunately my buy to open put option orders were all limit orders and the market opened with a gap down past my limit prices. I will have to pass on the down trades now as I do not want to chase it.

-         Lesson learned is that I should have been buying put positions slowly as the bounce was taking place before the market turned down.

It is Monday night. Labor Day weekend is over. Markets were closed in the US. Europe has taken the US flat jobs report really hard. Europe banks are all down 5-9% today. All the big names were hit hard. Tomorrow will be interesting with the huge gap down on futures. I think any bounce will probably be an opportunity for traders to take the down position. Still, traders will be watching to see the market reaction in the morning.  

Attached chart on SPY begs the question whether the previous support will hold. It is interesting how the market looks like it is playing out a repeat of June 2010. I think global fundamentals are actually a lot weaker than last year.