Sunday, February 16, 2014

Inflection Points

Nothing like a little snow and a long weekend to make it easy to run stocks to inflection points.  Short term volatility hit it's record low on Friday and I decided to have my subscribers take profit.  The most aggressive made 4X their investments.  I am still holding a small position (Mar week 1 70's hedged with weekly 58's (Feb)) as I took a small SPY March put position on Thursday and Friday.  OTM at 177, hedged with weekly 176's (Feb), and every week thereafter until SPY hits 178 area.

I know everyone is giddy on SPY as Yellin is the new dove in charge, but  there will be no bonds for sale in March and April as we will run budget surpluses.  Yellen will taper in March, and that will set off a fairly large correction into May.  I am happy to be a little early, as I was in January and get my options cheap.  This is not 2013, this will be a traders market.  There are landmines everywhere.

Gold and miners also hit resistance areas, and I will trim my whole metals / miners part of my portfolio in half. We had a nice run, and time to get a better bite at lower prices for the next move higher.

The portfolio is doing very well, and easily beating the SPY benchmark.  Enjoy the charts.

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