Closed MA vertical put and RUT 750 calendar

I closed the Vertical in MA 220/210 Put for 3.1 credit for $0.75 and my RUT 750 put for 10.6 (sold for 8.4).

Both trades reached my profit targets.

A note of the exits. The markets rallied over 1% after the labor day weekend because the impact to the gulf oil refineries was dampened by the milder affects of Hurricane Gustav. The ISM manufacturing index also came out at 49, which is just below 50. Nothing too bad or exciting here. The 50 mark is the gauge of a slowing or expanding economy. Later in the day all of the gains across the broad major indexes were gone. The reason? A looming global recession.

For a while now, there has been the relationship: oil drop -> market rally. I think that the market is beginning to realize that falling oil prices is not a good thing. The reason for falling oil prices has been that demand is slowing due to slower economic growth in Asia and Europe. If you take a look at the China ETF (FXI or PGJ) you can see that there is some serious damage. The Olympics did not help the Chinese markets as many anticipated.


A side note: My RIMM position took a major beating today. I need to get out of this at a lost on a short bounce.