I've heard the term "end game" over the last few days in relation to Greece exiting the Euro. If it plays out in the next week or so, there could be havoc in the market. It makes it hard to find a reason to buy in the short term although the sell off has been very orderly with no sign of panic and the VIX subdued. The Australian market is not seeing capitulation, just rotation into safe havens and I've been a little disappointed with the relative strength of the banks.
At 3.37 pm, the index is slipping back from intraday highs and is sitting at 4262, down 35. I've had a good day on the short side and have closed out FMG at 505 and KCN at 540. I also had some minor short positions in MQG, NCM and WPL which have come back nicely.
I'm holding onto the XJO May 4250 puts and they're close to the money. They expire on Thursday and I'm banking on more weakness. I'm reasonably comfortable because the market had three inside days, ie there was plenty of time to cover shorts.
I've added a short in UGL at 1240. It's not the greatest trade in the world but it's a continuation after a minor retracement and I'm looking for a quick move.
4.18 All over for the day with a minor rally to 4266 as US futures strengthen a touch.
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