Sunday, October 21, 2007

Market Outlook for the Week

Well, all the interesting earnings reports are behind us. The markets really took a beating late last week, as companies across the board reported earnings below or only meeting expectations, which the street hated (the only bright spot being Google).

For me, it was a great time to buy more Nasdaq (QQQQ) calls options on the cheap. Right now, I have amassed the largest position I have ever taken in one equity, about 25% of my total funds. It is a massive bet, but I am betting that the market well view the market this week with new eyes, see plenty of buying opportunities, and price in a rate cut coming after all this negative economic news.

What do I need? I need the Nasdaq to go up about 5% from where it closed on Friday, and my options will do very well.

Go Nasdaq!

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