The market was surprisingly strong last week. This may have been in part due to the Alibaba IPO. Now that is out of the way, maybe we will see downside pressure come in next week.
MCO turned down on Friday and remains below the 0 line. Until we have a turn up above the 0 line and an upturn in NYSI, I will not enter any long positions except for intraday hit and runs.
I am not very fond of shorting either as it has been a very strong bull market and all bears have been able to do is make the market go sidewise.
Nevertheless, I am maintaining my bearish posture until the internals tell us the next upmove is starting. I explained in my earlier post how I am positioned. Not much change except now I have entered an Oct Bear Put Spread position - 1980-1940 strikes - to profit from any quick move downward in next 2 weeks.
I have also entered an Iron Condor position with out of the money strikes - for next week - to earn some relatively low risk premium.
I also am entering small positions in puts in the following most likely on Monday -
TNA
BTU
GRMN
IDCC
I dont think I will overstay my welcome in above shorts. And position sizing is very small on all. Less that 2 percent risk on overall equity.
Gold remains extremely bearish. Now a bounce might come in next week. I am considering shorting the miners via puts. I will make a decision during the week.
Lastly VXX. I am considering a strategy over here but will not enter it until I get a confirmed bull move. This will be a bullish strategy to be executed in a way which will not risk much capital in account. Basic idea will be to construct a short call spread maybe 30-26. VXX has been going down longer term and I expect we will be lower by end of year. The idea is to earn some premium with minimal risk. I will outline details of this strategy once I enter it this week.
Best,
PM
MCO turned down on Friday and remains below the 0 line. Until we have a turn up above the 0 line and an upturn in NYSI, I will not enter any long positions except for intraday hit and runs.
I am not very fond of shorting either as it has been a very strong bull market and all bears have been able to do is make the market go sidewise.
Nevertheless, I am maintaining my bearish posture until the internals tell us the next upmove is starting. I explained in my earlier post how I am positioned. Not much change except now I have entered an Oct Bear Put Spread position - 1980-1940 strikes - to profit from any quick move downward in next 2 weeks.
I have also entered an Iron Condor position with out of the money strikes - for next week - to earn some relatively low risk premium.
I also am entering small positions in puts in the following most likely on Monday -
TNA
BTU
GRMN
IDCC
I dont think I will overstay my welcome in above shorts. And position sizing is very small on all. Less that 2 percent risk on overall equity.
Gold remains extremely bearish. Now a bounce might come in next week. I am considering shorting the miners via puts. I will make a decision during the week.
Lastly VXX. I am considering a strategy over here but will not enter it until I get a confirmed bull move. This will be a bullish strategy to be executed in a way which will not risk much capital in account. Basic idea will be to construct a short call spread maybe 30-26. VXX has been going down longer term and I expect we will be lower by end of year. The idea is to earn some premium with minimal risk. I will outline details of this strategy once I enter it this week.
Best,
PM
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