Trade!

Well, I decided to do only one trade today. The reason is that a bubble needs something to pop it. Also, credit tightening is bad for equities. With ANF, consumer credit is contracting and job losses continue. This is not good for spending. Also, banks and retail credit lenders like CIT will be cutting back and therefore charging more. So financing inventory will be more expensive. So, here's the trade:

short 5% ANF @ $37.31

And Gold is clearly acting like a bubble, as the media has proclaimed new highs at: $1,100, $1,105, $1,110, $1,115, $1,118. What's next? $1,119? $1,119.50?

And since China's started cutting back on lending and stimulus, that should kick in soon. So, here's the next trade:

long 1 FXI Jan. 2011 $30.00 put @ 1.86.

Can't short FXI, so I have to do it with the option.