9/13 Daily Commentary

Basel allowed banks to keep their capital structure any way they want it for years to come.  What a relief!  So lack of deflation is almost as good as inflation.  That's the fiat way. 
When a news event dominates a trading session it ordinarily lasts the entire day.  Basel was no exception. Came in with 8% SDS and added 2% more near the close.  Went short Dec DJ futures last night at 10,478 with a stop at 10,506.  
I count a 5 down from today's high, wave 1, followed by a wave 2 that almost retraced the entire decline.  This is what wave 2's do.  Bought another 4% SDS at 30.64 to bring me up to 14%.

This is what trading is all about.  No....not ulcers,  discerning opportunity from adversity.  This wave 2 allows me a good entry for expanding my position with low risk.  Bought another 4% SDS at 30.64 to bring me up to 14%.  If Dec DJ futures take out my 10,506 stop then I'll also use futures to partially offset my SDS position.
Gold is acting well.  Silver sucked bulls in on a new intra-day high.  I have a tiny ZSL short silver position which I'll hold unless silver goes 25c above today's high.
I'll short silver futures if Dec silver hits 1969.50 stop or has an hourly close below 1975.50.  These numbers will be going up through the night.