Tuesday, March 1, 2016

Mar 1 - Bears get mauled

Retail bears loaded onto the boat towards close in what looked like a set up by the MM's.  Lots of divergences yesterday in junk bonds, up/down volume, overall volume, put/call ratio which made me suspicious.   Still long from yesterday and looking for a pullback/ consolidation or a quick pop to 200 SPY to pull profits.

Treasuries losing a bid causing it to break the descending trendline
 Breakout over wedge/ triangle in emerging markets
HYG blasting off
 SPY very overbought but no divergences.  Willing to chance a pullback to see if we get another push up as we are very close to a potential sell zone.

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May 15 - Closed out IWM puts for +120% and picked up DAL and HD Jun calls

I'm going to let the market do its thing this week and probably stay away from new positions until Friday unless something very good pop...