Sunday, May 4, 2014

Broken Record

Not much has changed in my signals and my macro look except I think gold, silver, and the miners may have bottomed, and I have taken off my speculative puts and replaced them with calls on GLD and GDX.  I will close my DUST portfolio position this week.

I remain short everything else, UCO, Biotech, UNG, GASL, and have ES short future contracts.  The Fed did as I expected, because the math demanded it, The Fed is the only game in town and after June, the government will need funding again.

In the meantime expect general downward pressure in commodities, and high beta, and a lift in volatility.  We have squeezed that lemon to the pith, and no one has nearly enough protection.

Enjoy the charts, and remember to click to enlarge.  If you want to some real time option picks during the week, please consider my service

My trading computer is in the shop and I will post my portfolio and performance upon its return.


  1. This obviously doesn't affect your trading style but the Fed doesn't fund anything with QE, it merely lowers rates. The govt has no problem funding deficits with or without QE, so the whole narrative about the government needing money in June is false. Just think, the government has run a deficit for nearly its entire existence. Did it ever have a problem funding its spending? So why would all the sudden it need QE? It doesn't.

    1. Thanks, the Fed buys the bonds from the banks. If your narrative is right, why don't they simply lower the rate and not buy anything?

  2. Most of the stocks were trading far below its intrinsic value. The herd mentality once again prevented investors from reaping the benefits for Option trading Tips.