The non-farm payrolls number that indicates how many jobs were lost/created is something the Fed looks at quite seriously. Tomorrow at 8.30 am EST, we will know what that number is via Bloomberg or yahoo news. If the number is "bad" i.e. more jobs than expected are lost then naturally the stocks will fall figuring a recession. I have been short of the S&P via the 750 strike Dec 08 contracts and look to sell into the heightened feelings of gloom if any. If the NFP number is "good" then I will happily thank the Gods for sparing this economy and wait for the next time the general population panics. Also, Friday is a bit of a nasty day for these releases since no one wants to go home with naked short positions in a falling market people panic a lot if the number is bad.
Owning Gamma (or abusing terminology short dated volatility) is paying these days. The level of volatility we see right now is high and persistently so- FX volatility has tripled from mid 2007 levels and so has equity vol. I think commodity volatility has also doubled/tripled- look at oil falling from $120/$130 levels to $60/$70 levels.
Good Luck tomorrow
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