Futures are down in the pre-open. More slide this morning is fine with me. Ideally, I would like a down tape early and then a mid-day short covering rally. I would love to see Volatility drop for a day or two, and it should let me out of my calendar positions. But I don’t think we are done with the selling. Yikes.
The question for me today. Is who wants to hold over the weekend. Mary and Joe Investor may be nervous right now. There house has taken a hit, there portfolio is taking a hit, and the amount they can get at the bank has taken a hit. Hmmm. I sure like option strategies now.
6:30am – “U.S. Economy Grew at a 3.4% Annual Rate in the Second Quarter” The U.S. economy grew last quarter at the fastest pace in more than a year, propelled by rising exports, commercial construction and government spending.
That is the headline. Perfect for a dead cat bounce today.
I am going on a run before the mkt opens.
I am reading “The 4-hour work week”
Here is something a quote I enjoyed: Specifically applicable to trading.
There’s no difference between a pessimist who says, “Oh, it’s hopeless, so don’t bother doing anything,” and an optimist who says, “Don’t bother doing anything, it’s going to turn out fine anyway.” Either way, nothing happens.
-Yvon Chouinard, founder of Patagonia
TNX- This risk repricing has been dramatic. I hope my friends in the treasury trading world have been on the correct side of this trade. @ 6:30am the 10yr treasury yield is 47.53. Well below the 200MA.
MFE – I sold the remainder of my 35p Sept/Aug calendars for .47. I picked them up for between .20 and .25. I am pleased with the 80% gain.
CY – I exited the 22.5p position. .50, .45, .40. It broke above yesterday’s high, and I exited the remainder of my puts for a scratch. I made a little bit of money on this trade. It was a portfolio hedge in case of collapse. It did not happen.
DTV just hit the bottom uptrend line @ 22.48. The calendar spread is holding for now, the Bull call spread has lost .50. A close below this forces my hand. **** It has been forced. In conjunction with the SPX dropping below 1465 I exited the BC spreads @ .70. Bummer, but that is part of the deal. I exited the Calendar for .11. A loss of .05.
CLF – fell off a cliff and got it’s head ripped off. I think it may bounce at 68. I exited my 90/100/110c butterfly. I only had one on, but it is currently at 50% loss.
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Oprah did a 3 part series with Dr. David Hawkins, I will put these three on the blog this week. About 5 years ago I read Power vs. Force, and have since read Eye of the I, and I. This gentleman is incredible! It is my favorite book series.