Good news. Market up, my account up
over 2% for the week, new record high for my net liquidating value. I
reduce my risk profile another small notch. Bought some more BSV
(Vanguard short term bond etf). I survive the drop in Tesla because
my positions are way way out of the money. The strong rally pressured
some sold calls. I continue to rebalance back to slightly delta
positive as the rally rolls on.
As I have been writing, a lot of ducks are in place for a market top. The inverted yield curve, weakness in transports, stretched valuations. However, that doesn’t mean the duck will quack soon. A term I used a lot in the past in zombie bull. The zombie bull doesn’t seem to run on logic or food, or need sleep. It just keeps lurching ahead. The market may be entering a more speculative phase. A lot of big IPOs are coming to market, a lot of them are high risk situations. The huge run up in marijuana stocks discount many years of potential growth.
As always, market tops form with a relative maximum of buyers. This means that the majority of all in, all out timers are likely to be wrong at the turn. So where does this leave us? One foot in, one foot out. Options give ways to play this, but the picture is muddy. For the first time in a while, this week, I went long premium in a significant way, for a bit. I closed the positions quickly, because it now feels so weird to be long premium. I’m not saying go whole hog on anything, because it feels like a high risk situation.
As I have been writing, a lot of ducks are in place for a market top. The inverted yield curve, weakness in transports, stretched valuations. However, that doesn’t mean the duck will quack soon. A term I used a lot in the past in zombie bull. The zombie bull doesn’t seem to run on logic or food, or need sleep. It just keeps lurching ahead. The market may be entering a more speculative phase. A lot of big IPOs are coming to market, a lot of them are high risk situations. The huge run up in marijuana stocks discount many years of potential growth.
As always, market tops form with a relative maximum of buyers. This means that the majority of all in, all out timers are likely to be wrong at the turn. So where does this leave us? One foot in, one foot out. Options give ways to play this, but the picture is muddy. For the first time in a while, this week, I went long premium in a significant way, for a bit. I closed the positions quickly, because it now feels so weird to be long premium. I’m not saying go whole hog on anything, because it feels like a high risk situation.
No comments:
Post a Comment