a heads up

I saw this article a few minutes ago, and wanted to share it. It highlights a 50:1 leverage by SocGen. I do not know the validity of this argument, and I am not changing my current strategy around it (because I am not a banking expert). 

I always intended on taking an SPY Put trade as the SP500 approached 1220, but due to this leverage argument (that can be seriously exploited by the rumor mongers), I took on small protection near 1200 (what I think is very light resistance). The current level already acted as an intra-day resistance, and barring any developments tomorrow, it should be breached.  But CNBC has pretty much set up a potential sell off tomorrow by constantly emphasizing a meeting tomorrow between Sarkozy and Merkel (which was planned weeks ago, and seems not to be as big of a deal as CNBC is making it).

I should note: I did enter more Apple during its intra-day weakness, and SU as well. I will plan on entering IBM and GOOG if we see weakness tomorrow.

If the EU banks are really a concern, the EU leadership must come to an agreement on a solution very quickly.