Last 2 weeks, I made very short term trades (Gorilla trades) assuming that market will mostly be flat. VIX was indicating complacency, so I decided to focus on short term setups. It was good to see that our assumptions proved true. Handsome gains were booked though we never invested more than 50% of portfolio at any time.
Financial results could be a catalyst to move the market in either direction. There are many stocks with overbought conditions and they still continue to rise. Furthermore, short squeeze is giving momentum to a few weak, but heavily shorted stocks. Commodities look strong, but are under-performing due to strength in the mighty dollar.
Bottomline, let's pick a pair trade to profit with a move in either direction. In addition, I am screening few stocks with very low option premium (Greeks). Any rise in volatility can give 20% gains even if stock doesn't move much.
It is really exciting to see that followers subscribing by email are in double digits in just two weeks of launch of this blog.
Tip of the week: Do not put all eggs in one basket. Allocate money for short-term and long-term opportunities.
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