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bb64

bb64
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  • Looking To Go Long The S&P 500? Wait For A Better Entry [View article]
    For your stochastic oscillator on your daily chart do you use the standard 14,3,3 parameter?
    Oct 22 12:07 PM | Likes Like |Link to Comment
  • Nomura's incorrigible bear Bob Janjuah says S&P to dip 5-10% in Q2 before hitting new nominal highs in Q3. Janjuah remains "as convinced as ever" that bullishness will "come under extreme pressure" late in the year. For now he recommends "getting short risk at a S&P level of 1550 … looking for a move down to 1450." [View news story]
    You are right about the finite loss calculation when attempting to short the market with puts. If that is your primary concern then puts will serve the purpose. The problem with options is getting your timing right. Time is never your friend when you own options. The SPX may at some point retrace to the level you think it will, but it may do so outside the window of time (the expiry) in your put options. Watching time decay erode your puts while the market does the jitterbug in a trading range and refuses to go down I'm sure has frustrated many traders during this rally. I suppose you can just buy December or January 156 puts for example and give yourself the rest of the year to capture that inevitable move down but you will pay a hefty premium for that time value.
    Hope you have a happy Easter too,
    BB64
    Mar 27 09:35 PM | Likes Like |Link to Comment
  • What Is The Best Way To Hedge S&P 500 Exposure? [View article]
    I have been observing the performance of SPLV on a day to day basis and it seems to capture most of the gains on the SPX but on the down days is usually down less than the SPY, sometimes the difference is substantial. In this way it does act as a buffer to the downside while allowing you to stay in the market and get surprisingly close to the SPY on the upside.
    Mar 27 01:16 AM | Likes Like |Link to Comment
  • Nomura's incorrigible bear Bob Janjuah says S&P to dip 5-10% in Q2 before hitting new nominal highs in Q3. Janjuah remains "as convinced as ever" that bullishness will "come under extreme pressure" late in the year. For now he recommends "getting short risk at a S&P level of 1550 … looking for a move down to 1450." [View news story]
    Problem there is that if the market consolidates around this level or doesn't move down appreciably, Theta will whittle your puts down to nothing.
    Mar 27 01:13 AM | Likes Like |Link to Comment
  • Dow Theorists get chatty as both the DJIA (DIA) and DJ Transports (IYT) set all-time highs yesterday. "I've never seen anything like the action since the 2009 bottom," says Richard Russell. Ryan Detrick says when both averages make new highs near the same time, stocks tend to see strong returns over the following year. [View news story]
    Just keep riding the bull with SPY calls. By the time it all comes screeching to a halt we can be kicking back in a hammock in Tahiti. If the black swan comes calling a little earlier than anticipated you'll lose the value of your contracts, nothing more. Of course, with everyone waiting for a 10% pullback, as long as you have a couple of months until expiry on your calls, you won't even lose the value of those.
    Mar 9 06:15 AM | 1 Like Like |Link to Comment
  • Apple Is Ripening And So Is Its Stock [View article]
    Retail investors are buying while institutions are dumping right down their throats. Seems the small investor who is in love with Apple is blind to the big picture. This company will never be the same without Steve Jobs. They are starting to miss their quarters and their guidance for what should be their strongest quarter during the holiday season was an abomination it was so far beneath analysts expectations. Not to mention Samsung is kicking their butt in global phone sales. Seems this stuff isn't lost on the big boys though, they are unloading as evidenced by the volume.
    Nov 3 06:06 AM | Likes Like |Link to Comment
  • 9 Reasons Apple Shares Will Make New Highs, Again [View article]
    At a certain point when a company begins to dominate too much it becomes unpalatable and loses its trendiness.
    I mean do you really want to live in a world where the Apple logo is on every phone, tablet, music device, TV and every other tech gadget in existance? I don't. It reminds me of the movie Demolition Man where every restaurant is a Taco Bell.
    The Blackberry was THE phone to have not so many years ago. Now its the iPhone. Soon it will be something else.
    Oct 8 11:16 PM | Likes Like |Link to Comment
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