Wed 23 Jan 2008
Extensive volatility has hit the markets to the point that brokerages have eliminated reduced intraday margin requirements. Today the S&P 500 had a range of 70 points. This amounts to a 5% swing over just one day. At the end of the day, the market rallied 2.14%. The Federal Reserve’s Rate cut along with the talk of bond insurer bail outs makes the possibility of a bounce high. As a result, the model portfolio’s SDS position has been sold for a nice profit. I’ll be looking for opportunities to reenter the market but would like to see a reduction in volatility before doing so.