Tuesday, March 16, 2010

Cash is trash day

Cash is trash for the day, as stocks, bonds, gold all move higher. I am surprised by the strength. Thankfully, I am not a stubborn trader. There are a fair number of stock investors that remain on the sidelines, now having missed the entire 70% up move from last year's lows. Worse, there are some stubborn folks that have been short, or keep shorting the stock market, and for the most part have kept losing money. Today's action doesn't look good for would be stock market bears, as the potential double top in SPY can now be said to have failed.

Today, I was tempted to add to gold longs, but told myself that a better entry point is coming soon. My recent SPY vertical put spread is down over 50% in value from the entry. Thankfully, I hedged with offsetting options. So the good news is that I haven't lost much on SPY positions during the last couple of weeks, the bad news is that I lost while all the bullish participants made money.

I wish I had some brilliant insight into what comes next, but I have been mostly ice cold as far as predictions. That said, all three of the March options that I am short look to expire worthless without any stress. This means another half-decent month as far as trading profits and losses on the monthly option ledger that closes this Friday.

Long GLD, TLT
ever slightly short SPY

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