After four consecutive weeks of about 100% gains/week, we were stopped out today. Seagate's strong results and EMN upgrade by Goldman Sach led to first losing week in 2012. Profit on TXN, CMI, and STJ trades was not enough to overcome losses of STX and EMN.
Refer to 01/27 post, this week is historically bullish and validated the record. Historically, following week should be weak, so I am mostly shorting the market. With market hitting 3-year high, it was a conscious decision to enter convervative/hedged bearish positions. Next week should be in-money provided S&P closes below 1350.
A few autotraders and bears are caught up on the wrong side of the market. I will watch their moves. S&P 1350 should act as a resistance, if not, market may go higher another 2% before a decent pullback.
45% of the portfolio is in cash (additional premium is collected for GS, SPY Diagonal spreads) to take advantage of any market opportunity.
Every week cannot be profitable. In spite of losses this week, the portfolio is still had $11,000 gains. Open positions are losing $15,00 approximately.
I am looking forward to the following week.
Some of you are asking for the real time alerts. I am planning to start offering real time alerts from Q2, 2012. In the meantime, please send me an email if you got an opening trade execution. I will take my best effort to communicate closing signals prior to posting them on the website.
Talk to you next week.
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