Saturday, February 25, 2017

Weekly: Elephants on the move

The rally rolls on. The DJIA is now at 11 record high closes in a row. Something that hasn't happened since 1987. 1987 had the huge October crash. There was a euphoric run up before the crash, and the recovery was also relatively quick. It feels like a difficult market to trade. However, the elephants, the big money is buying virtually every day. One reason is that so many were under invested before the election. More than a few sold at resistance levels, thinking a pullback was a sure thing. 
My take is that the public and talking heads remain skeptical, even though the newsletter marketvane is at nose bleed bullish levels. The AAII sentiment, which is mostly long term oriented, experienced, individual investors is right at the long term average of 38.5% bullish.

This week, I got back into NVDA with a short strangle, and initiated a position in NTES (rather badly I might add). Here are the trades (sell means sell-to-open, p = puts, c = calls, number at the end of line is price per contract.

Tue Sell BRKB Mar31 165 p 133
Sell IWM Apr 125 p 56

Sell DIA Apr 190 p 58
Sell BA Apr 155 p 48

Thu Sell NVDA strangle: 
Sell NVDA Mar 80 p 15
Sell NVDA Mar 122 c 19

Sell SPY Mar31 220 p 45

Sell NTES Mar 330 c 55
Sell NTES Mar 255 p 60

Sell IWM Apr 151 c 15

Sell TIF strangle: 
Sell TIF Apr 75 p 42
Sell TIF Apr 105 c 32

Sell DIA Mar 200 p 37

Fri Sell BA Mar 165 p 28
Sell NTES Mar 262.5 p 68

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