If the market rallies...

Those who come by and visit this blog know I've been beating my chest to encourage traders to buy portfolio protection and to write only very conservative trades. If the market rallies we should be looking to add some protective index puts on the cheap. Maybe we should load up on a few extra to sell at a profit when the market inevitably tanks again while leaving a few in the account for protection. I'm not going to take a rally as an indicator that things are back to normal and get a little greedier in my trades.

We are in a Depression with a capital D. I will only write on the highest quality issues, preferably ETF's. When support levels for GLD and GDX are touched I will be looking to write several strikes below support. I'm probably going to chill a little bit on ERX because I've traded it so much and feel the need to diversify a little more. ERX 17.5 and 20 puts look yummy, however. Notice how far out of the money they are...that's the way I'm trading until further notice.