I’m buying into this puke. Based on a study I’ve run I’m guessing QQQ will test around ~91.5 and SPY to test 185 so I don’t think the low is in yet. Statistically a swing low arrives around Thursday or Friday of this week.
Let’s dive into some charts.
Put/Call… everyone has moved to the back of the bus…that will be corrected
Monthly chart is now broken….
VXX… a short on rips
Europe et al.
as a side note IWM has been outperforming SPY for a couple days and I expect IWM to reverse the trend of underperforming SPY and start outperforming into the end of the year. Good luck.
TWTR not sure what to make of it but below 60 and consolidating appears bearish to me. I’m ready to pounce on weakness.
TSLA incredible relentless move today. I caught about $6 of it with decent size but never expected the rampage we saw.
Implemented 1x passive SP500 position today using covered calls. I was thinking of allowing up to a 5x multiplier but I’ll leave those types of swing for options if the market reaches an very oversold position and I feel it’s worth the risk.
This market certainly proves over and over and over how strong it is. Swinging BMRN long.
FB has a bullish slant to it at the all time highs. Earnings Wed, 1/29 AMC, Fed day.
I’m going to begin implementing and tracking a discretionary but mostly passive investment strategy using covered calls and the SP500.
I will be move between 0,1, 2, 3x size in the SP500 (SPY or mini contract) and use covered calls at all times in equal proportion.
I will use various analyses and experience to increase size during pullbacks in bull markets. At a time like right now on the first vertical development in the markets since 12-18-2013 I will stay in cash (zero, no covered calls).
Instead of using monthly options I will use weekly options in SPY 1/2% to 3% away from market price depending on volatility and where the market is. When I decide the market is oversold I will sell option strikes further out (3%) in order to capture more price movement.
This is not to be a trading strategy but a passive strategy with a decent amount of discretion in order to increase absolute return and in all likelihood reduce worst drawdown.