Tag Archive | "dia"

There, That’s Better

Friday, June 6, 2008

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This morning (premarket) we sent a note to subscribers laying out some hedging strategies, should they be needed in the event of a continued rally. Happily, not only was that note totally unnecessary, but today’s fantastic drop has us ideally positioned going into next week. As several members mentioned today in correspondence, the advantages of market-neutral trading strategies aren’t limited to markets that blandly drift sideways; being neutral is also a great way to avoid the day-to-day whiplash of the…

Yawning About Oil

Thursday, May 29, 2008

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Maybe it’s just us, but markets seem really boring and indecisive this week. There’s not much to talk about unless you want to talk oil or bonds. We’re beyond sick of hearing and talking about oil (though we’re dipping a toe into some short positions here), and although bonds are always more exciting than people give them credit for (we’re still in love with munis this year), well, meh. We’re in the mood to do another newsletter takedown, so…

Ditch the Story

Tuesday, May 27, 2008

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Times like this are tough for traders who insist that their positions have some kind of story supporting them. Technology is strong and probably always will be, but it’s not going back to dotcom levels; China, everybody’s favorite narrative for this decade, seems sort of broken; the agriculture and solar stocks look ready to return to earth after a high-flying run; even oil is looking overextended. And it’s still not safe to talk about real estate or financial stocks. Tim

VIX Wrapup, Variance Index, Very Uncertain Markets

Thursday, May 22, 2008

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Our VIX post from yesterday got picked up by two of the deans of options blogging, Adam Warner (shown) and Bill Luby: The Big Question for the VIX VIX Jumping the Shark? VIX and VIX (and thanks also to Abnormal Returns for the link) Not much to add in response to all this, except to agree that the increased coverage of this one instrument doesn’t change the fact that it still definitely serves a purpose. When…

May Monthly Review

Saturday, May 17, 2008

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We’re making some changes to our monthly review – hopefully the structure of this new format will make it easier to follow along and compare our strategy with the relevant benchmarks. Going forward, we’ll include the following items in each monthly review: 1) a quick-glance overview of our monthly performance, in the chart at right; 2) a performance comparison of our positions for the month vs. the SPX, DJIA, and RUT, plus BEP, which is an S&P 500 Covered Call…

Markets at a Key Juncture

Sunday, May 11, 2008

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The S&P 500 is sitting right at the trendline that extends from the March lows, and is also right at the 20DMA, which is a reasonable place to be after drifting above that moving average for the past couple weeks. Market internals suggest that this pullback may be about finished, providing a setup for some further upside; breadth and on balance volume improved on Friday. At the same time, options sentiment is still bearish, and a few technical indicators (CCI,…

Does This Rally Have Legs?

Tuesday, April 22, 2008

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So the big question now is whether the markets are consolidating and setting up for another move higher, or are preparing to roll over from the lack of broad-based leadership. As energy and commodities power higher, the financials continue to act as a major drag – consider the chart at right comparing the S&P500 ETF (white line) with the Dow Jones Industrials ETF (blue line). The Dow has clearly outperformed recently, and without some relief in the financial sector, it’s…

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Jared Woodard specializes in trading volatility as an asset class. With over a decade of experience trading options and other volatility products ... Read More

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