My current income generating (by selling weekly & monthly options) portfolio:
As you can see from the above, my ass is hangin' out in Riskville. It's feelin' pretty breezy there too..........
Given that nothing is making much $en$e in the market reactions to what passes for "news", real or imagined these days I think I'll be happy to get through next week. If I still have Credit Card advance checks and a VISA card that means I still have money - right?
BTFD seems to have turned into STFR..... (excerpt below)
"Actions To Take Next Week
With the market exceeding 3-standard deviations below the 50-dma currently, the extreme oversold condition still sets the market up for a fairly strong bounce. That bounce SHOULD be sold into.
Portfolio management processes have now been switched from “buying dips” to “selling rallies” until the technical backdrop changes.
- Re-evaluating overall portfolio exposures. It is highly likely that equity allocations have gotten out of tolerance from the original allocation models. We will reduce overall allocation models from 60/40 to 50/50 or less.
- Look to add bond exposure to mitigate volatility risk. (Read:The Upcoming Bond Bull Market)
- Use rallies to raise cash as needed. (Cash is a risk-free portfolio hedge)
- Review all positions (Sell losers/trim winners)
- Look for opportunities in other markets (Gold is showing signs of life.)
- Add hedges to portfolios (Short term treasuries, cash, and short positions on breaks of support)
- Trade opportunistically (There are always rotations that can be taken advantage of)
- Drastically tighten up stop losses. (We had previously given stop losses a bit of leeway as long as the bull market trend was intact. Such is no longer the case.)
If I am right, the conservative stance and hedges in portfolios will protect capital in the short-term. The reduced volatility allows for a logical approach to further adjustments as the correction becomes more apparent. (The goal is not to be forced into a “panic selling” situation.)
If I am wrong, and the bull market resumes, we simply remove hedges, and reallocate equity exposure.
See you next week."
Maybe this will save me?