Hmmm.....sitting in front of my trading computer for the first time in a while, whilst the market is open. Maybe getting a bit itchy with the trigger finger having not traded "live" like this for a while so here's what I've done. I don't like the sell off in the long bond of late (perhaps traders are now betting the Fed purchase of treasuries won't be as much or the Fed won't buy at all!) but I've closed out my short put position. This only leaves me with the short call spread which I'm trying to close also. I've also entered into the ESI trade I wrote about earlier but for $0.13 credit (I was a bit hasty on this as you should be able to get filled for $0.23 or thereabouts). Also I just realised that ESI has earnings next week as well. Therefore I'm taking quite a gamble as the market is pricing in a hefty move and my breakeven is at $50.
As for the GOOG trade, it's pretty much trading at around even and I've got an order to close at $0.02 debit.
Market internals looking decidedly weak. Breadth and A/D lines are all trending down with the exception of Nasdaq breadth. Meanwhile cumulative ticks are trending straight down too. Interesting. Is this the pullback everyone's been waiting for?? Was the big move on Wednesday the blow off top?? VIX is back above 20 today.
Hi MC - similar sentiment to yours from Corey Rosenbloom also...bearish divergence of market internals and S&P.
ReplyDeleteHow do you see the correlation between ASX and S&P at the moment? My Aussie positions have some nice fat on them just now...
dP
I think it's a good idea to take off some longs near resistance and wait for the breakout or breakdown to occur. You will always get a chance to buy good stocks at higher prices later on (something that's well highlighted by Jesse Livermore in the book "Reminiscences of a Stock Operator" - great book even though it was written 100 years ago! Still very applicable and insightful stuff).
ReplyDeleteTks Michael :)
ReplyDelete