Thursday, March 07, 2013

Joyless bulls and adds for BA SPY (sell puts)

I add to my long position by selling BA Apr 72.5 puts @81.7
Boeing breaking out to new highs from a year-long chart base. There are multiple chart support levels. The calendar indicates a good chance for a sharp and quick stock market pullback in late March. Boeing is the kind of stock I would like to get more of on such a pullback.

I also add SPY longs via selling SPY Apr 140 puts @154.9. The gap at 142 to 144, I see as strong chart support.

I had coffee with some friends and one of them talked about a stock market bubble with no fundamentals to back it. Yesterday, I talked to another friend. He has been invested in various individual stocks all his adult life. This second friend talked about selling all his stocks, moving to cash and staying there. These kind of stories are not signs of a market top. A short pullback is in the seasonal cards, but it will likely be met by buyers. There was a talking head from a discount brokerage on TV, saying that customer accounts are still heavy in cash. 

Separately, there are reports of investors buying stuff like SPLV, a low volatility index ETF that declines less when the market goes down. While all these anecdotes are not data, they do influence my decision making.

Long BA BRKB IWM LGF MON PG QCOM SPY
Net neutral APC KORS

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