Saturday, June 20, 2015

Monthly 47-11-1 bull market is intact, grade C

I count forty seven winners, eleven losers, one break even trade for the June option cycle. While I made money, I had my first whopper loss for 2015 plus a stupid trade so grade is a C. Both the big loser and whopper loss were in AMBA. I also got whipsawed in JBLU and MRK. I made money in SKX, but could have made more had I managed it better. It was not the best month for me, even though the profits were okay. 
I am up about 9% for the year. Considering how cautiously I tend to trade, I see that is a good number. Of course, I would like it to be better.

As for markets, bonds got hit (TLT), China popped then flopped (FXI), airlines dipped then recovered, biotech (IBB) made a new all time high, gold showed some feeble signs of life (GLD). While the Russell 2000 (IWM) made new highs, the transports remain weak (IYT), and the dip in bonds has been painful. Foreign stock markets have been among the biggest winners in calendar 2015, but there was some give back.

The U.S. bull market is still intact. The final phase can be speculative with huge gains in very few stocks. Some of the recent IPOs and other high flyers like AMBA PANW are indicating some signs of froth. I tend to be a timid options trader. Rule #1 remains, live to trade another day. For me, that often means following near mechanical trading rules to take losses and reduce risk. Thanks for reading.

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