I smell a selloff...

The market just gapped down a little and I am scouring for a few put plays.

I am loving the strength in general, but I share office space with the smartest real estate man in Phoenix and deal after deal has been flowing into our office and flowing right into the shredder. Blair is the Gekko of real estate :) . He is bearish on many aspects of the real estate market. he ubderstands though that the TOPS take a long time to build.

Blair has the luxury of saying no, but guess what – SO DO WE AS STOCK TRADERS. NO is GOOD.

Yesterday I floated a few “thinking of shorthing..” emails around to some traders I trust for a sense of their mood. Good luck is all I got back. Nobody has an edge on the short side here. It’s tough.

I am drawn to the trannies. I made some good trades in Fedex and UPS in the summer to the shortside and I got lucky with the timing.

The difference from 5 years ago is that I booked the short trades. If I had not, I would have given up all my gains despite a market for shippers that has not likely improved. Powder dry, this is the area I am focused the next few hours. I am nibbling on some UPS and Fedex puts and maybe some SPY puts for a trade later today.

At least that Google has traded back down a few percent since the announcement. That makes sense to me.

Disclosure – adding some UPS and FEDEX puts