Tuesday, May 2, 2017

May 2 - Energy at a critical inflection point

I sold XBI today after it broke lower and XLF mid last week.  I am not excited about the indexes stalling out here when previously we moved higher like post Trump, Feb.  We got a pop after the French election but absolutely no follow through.  This is concerning.  SPY/ DIA stalled at previous highs and IWM made a nice move but has slowed down.  The only index which is definitively bullish is tech.

Overall markets aside, I would continue to be very bullish on energy but I don't like the seasonality ahead combined with the indexes slowing down.  Generally I will be increasing cash position and maybe lightening up energy depending on how things go.

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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...