Posted on Jul 31, 2014 by WHC Bassetti.
Although the day is young, a 30 point move in the SPX with a broken trendline is sufficient for us to begin hedging. We closed some UPRO positions in family accounts, liquidated some QLD positions and laid on an SPXU position in the hedging account we use for losing money. This account is an external account so we can use $3000 of losses at tax time whereas the profitable (highly) accounts are largely IRAs.
Posted on Jul 29, 2014 by WHC Bassetti.
The top trendline here appears to be vulnerable to being broken. This will inevitably cause some commotion — how much unknown, but some. The next trendline down is the worrisome one — from nov12. Nontheless this present short term trendline should be looked to. Readers have probably forgotten that occasional downwaves occur. They should now look to their portfolios and plan a strategy if the downwave develops. We will have some suggestions in the next few days.
Posted on Jul 24, 2014 by WHC Bassetti.
Top chatter continues apace and some talking heads are worried about the fact that there has been no correction for 70 odd days. In line with that the Tell on Marketwatch published an interesting chart showing up and down waves. Worth looking at:
Posted on Jul 20, 2014 by WHC Bassetti.
The pyrotechnics of Thursday and Friday might obscure what is going on. But we should look at those days just briefly. Thursday was a day of professional panic. The pros thought that the Putin phollies might bring the market down. The fact they didn’t testifies to the strength of the market, as does the snap back on Friday.
Posted on Jul 17, 2014 by WHC Bassetti.
Traders have been nervously circling the chairs eyeing other traders in an effort to be first to grab a chair when the music stopped. The music stopped with a bang when Russian separatists in Ukraine shot down a commercial airliner with 295 people on board. Traders are hair trigger creatures. They shoot first and ask questions afterwards. They bailed out of stocks and into gold and bonds.